Cardano protocol Meld denies rumors of insider trading

Self-described “DeFi, non-custodial, banking protocol,” Meld responded to allegations of foul play, stating nary insider trading had taken spot connected its platform.

Meld denies wrongdoing

The accusations stemmed from on-chain investigation conducted by TapTools, highlighting a bid of ample token sales.

Further sleuthing revealed the code liable had sold tokens worthy 1.24 cardinal ADA, oregon astir $405,000 astatine today’s price. Since September 2022, the code has been credited monthly with betwixt 3 and 7 cardinal MELD tokens.

In addition, TapTools had identified 2 associated addresses that besides sold but ne'er bought MELD tokens. These token income totaled conscionable implicit 1 cardinal ADA, oregon astir $340,000 astatine today’s price.

“The wallet has 2 associated addresses that besides person a past of selling without having purchased any, which person sold a combined 1.04M $ADA worthy of $MELD.”

With that, TapTools asked, “where did the tokens travel from?” portion speculating the code is controlled by an insider.

In response, Meld said a “private merchantability token holder” owns this address, and they person nary power implicit the actions of token holders. Further, the institution denied suggestions that unit were progressive and benefited from the token sales.

“Hey @TapTools the transactions you are pointing retired are (confirmed) backstage merchantability token holder getting their $MELD tokens from the vesting declaration and they person decided to sell. This is DeFi 101. If you are insinuating that these are MELD staff? They are NOT MELD staff.”

CryptoSlate reached retired to Meld for comment, but a effect had not been received astatine the clip of press.

Public testnet immenent

Meld was started successful late 2020 by CEO Ken Olling and was the archetypal institution to tally an Initial Stake Pool Offering (ISPO.) More than 620 cardinal ADA was staked by the Cardano community, raising astir $10 million. The institution raised a further $35 cardinal done backstage token sales.

The steadfast aims to “meld” fiat and crypto by offering users fiat loans against their crypto holdings without giving up custody of their integer assets. At the aforesaid time, users besides payment from involvement connected the crypto collateral implicit the beingness of the loan.

Per the roadmap, Q1 2023 volition spot the motorboat of the nationalist testnet. A caller tweet pinned down the go-live day to Jan. 16.

The station Cardano protocol Meld denies rumors of insider trading appeared archetypal connected CryptoSlate.