• Meld, a „DeFi, non-custodial, banking protocol“ has denied accusations of insider trading stemming from on-chain analysis from TapTools.
• TapTools had identified a series of large token sales worth 1.24 million ADA, or about $405,000 at today’s price, and two associated addresses that had sold but never bought MELD tokens.
• Meld clarified that the address belongs to a private sale token holder, and that no staff were involved or had benefited from the token sales.
Meld, a decentralized finance, non-custodial banking protocol, has denied accusations of insider trading. The accusations were brought up after on-chain analysis conducted by TapTools, a blockchain analytics tool, revealed a series of large token sales.
TapTools had identified an address responsible for selling tokens worth 1.24 million ADA, or about $405,000 at today’s price. It was also noted that since September 2022, the address has been credited monthly with between three and seven million MELD tokens. Furthermore, two associated addresses were discovered to have sold but never bought MELD tokens; these token sales totaled just over one million ADA, or approximately $340,000 at today’s price.
TapTools asked, „where did the tokens come from?“, while speculating that the address was controlled by an insider. In response, Meld released a statement clarifying that the address in question belonged to a private sale token holder, and that they had no control over the actions of token holders. Additionally, Meld denied the suggestions that staff members were involved in or had benefited from the token sales.
Meld went on to emphasize its commitment to transparency, stating that all of its token sales were conducted in accordance with the Cardano protocol. The protocol requires all token sales to be conducted with full transparency, and Meld has complied with this. Furthermore, Meld reiterated its commitment to ensuring the highest standards of fairness and compliance are maintained in all of its activities.
The news of the accusations of insider trading, and the ensuing response from Meld, has caused a stir in the Cardano community. Many have expressed their concern about the alleged activities, and have called for greater transparency from the protocol. It is yet to be seen how the community will respond to the statement from Meld, and whether or not it will be accepted.