One of Polygon’s cryptocurrencies may turn out to be a Ponzi scheme

According to PeckShield, the address 0xC7728354f9fe0e43514B1227162D5B0E40FaD410, which currently holds 22 million MATIC tokens, may be a Ponzi scheme. Analysts noted that the address belongs to the Chinese project Avatar. It is difficult to find information about the crypto pyramid on social media, as the main activity of the fraudsters takes place on Chinese platforms.

Avatar offers an affiliate staking scheme with ultra-high returns. Some crypto enthusiasts have previously drawn attention to the dubious «miracle offers» that Avatar makes to potential customers.

According to polygonscan statistics, Avatar has become the fifth largest holder of Polygon (MATIC) tokens. At the same time, it even surpassed the hot wallet Binance in the ranking.

Interestingly, the same address has recently attracted the attention of Colin Wu, a popular crypto journalist at Wu Blockchain. Recently, the address has been one of the largest consumers of gas in the Polygon network, with transaction fees amounting to more than 100,000 MATICs in the last week alone. Colin Wu emphasized that the number of transactions carried out by the address 0xC7728354f9fe0e43514B1227162D5B0E40FaD410 reached 117,000. As a result, the price of gas exceeded 700 Gwei.

#PeckShieldAlert The address 0xc772, associated with a Ponzi scheme, has amassed ~22M $MATIC, making it the 5th largest holder of $MATIC.
It is one of the Top gas spenders on Polygon and has been consuming a significant amount of gas fees in recent days. https://t.co/Oum2lnY2qJ pic.twitter.com/ZeeS48s0Oe

— PeckShieldAlert (@PeckShieldAlert) February 13, 2023

However, despite the dubious history with the still unknown Chinese project, the Polygon blockchain is experiencing some positive dynamics. It is worth noting that Polygon has now surpassed Ethereum in terms of the number of active user addresses. According to CoinMarketCap, the MATIC $0.56 Polygon -0.39% Market capitalization $5.19 billion VOL. 24 hours $20.22 million token has supplantedand entered the top 10 cryptocurrencies, taking the last place. At the time of writing, MATIC is trading at $ 1.18 with a market capitalization of $ 10.5 billion.

In addition, the project’s activity in the NFT market was a positive factor for MATIC, as some NFT projects had previously switched from the Solana blockchain to Polygon. Interestingly, thanks to Donald Trump’s scandalous NFT collection, the Polygon network has been outperforming the Ethereum network for the second month in a row. Thus, in December 2022, 1.3 million Trump Digital Trading Cards were sold on Polygon, and in January — 1.5 million. During the same period, sales figures on the Ethereum network amounted to 995,000 and 1.1 million, respectively.