Mystiko Network Faces Insider Trading Allegations Amid Airdrop

• Mystiko Network faces insider trading accusations during the second airdrop.
• 1,487 new addresses received unusual airdrop token amounts.

Speculation has surged on social media, accusing Mystiko Network of significant insider trading during its second airdrop. On July 5 at 16:22 UTC, the official Mystiko-Vault Community Incentives account (0xBc…25d6) distributed 20 million XZK tokens to 1,487 newly created addresses via the Multisender app. Notably, these addresses received gas from OKX or Bybit a day after obtaining XZK, and the number of airdrop tokens they received was higher than that of typical users.

Mystiko Network, known for its privacy-preserving blockchain solutions, secured $18 million in financing led by Sequoia India in March 2024. 

Responding to a prominent reporter, Mystiko dismissed the accusations as baseless, emphasizing the transparency of blockchain technology. “A one-minute search can prove this claim unsubstantiated,” they stated. The network defended the allocation of part of the airdrop for active network users, asserting that all eligible wallets had verifiable transactions on the public blockchain.

However, a community member challenged this explanation, highlighting the suspicious outflow to the 1,487 addresses, which allegedly exhibited the same behavioral pattern since April 2023. “Please explain the outflow from Mystiko-Vault Community Incentives: 0xBc..25d6 to 1,487 addresses. You made a batch of internal addresses back in April 2023, all with the same behavioral pattern, and now you’re bringing them back out and continuing to use them. Don’t kid yourself,” the community member stated.

Mystiko Response

In response, Mystiko reiterated their commitment to transparency and community trust. The network confirmed that the addresses met early contributor criteria and had numerous transactions.

“At Mystiko Network, transparency and community trust are paramount.“We recently became aware of allegations regarding certain transactions involving our tokens.” Here’s our response: Mystiko was alerted to these allegations and immediately launched an internal investigation. Our investigation confirmed the existence of the addresses in question and their transaction history. 

These addresses appear to be aligned with criteria established for early contributors to our ecosystem, with multiple transactions within the network. We firmly believe in rewarding early contributors and upholding the principles of fairness in decentralized finance. “Moving forward, we will enhance transparency and governance to better serve our community,” Mystiko stated.

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