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On-chain analytics provider flagged $2.4M TRB deposit from Tellor team after the token’s price tripled<\/p>\n
The team behind Tellor, a protocol providing oracles for smart contracts, is facing market manipulation accusations after the price of its TRB token soared 172% in a day before the gains were wiped out within a single hour on Dec. 31.<\/p>\n
Data from TradingView shows the price of Tellor Tributes (TRB) spiking from $231 to $630 over eight hours on Dec. 31. After a period of consolidation, TRB\u2019s price evaporated from $611 to $195 over less than one hour. The token later tagged a low of $120 and last changed hands for $184.<\/p>\n On Dec. 29, Spot On Chain, an on-chain data provider, flagged that TRB had tagged an all-time high of $225, noting that a small group of whales held an outsized share of the token\u2019s supply.<\/p>\n <\/p>\n \u201cAmong the 2.5M TRB in circulation, about 1.7M is on exchanges, and 660K is held by a group of 20 whales,\u201d Spot On Chain tweeted<\/a>. \u201cThe group of whales accumulated these tokens in August and September at a favorable price of $15\u2026 Over the past two months, the whales have slowly deposited their tokens onto exchanges, creating a pump-and-dump cycle to liquidate their holdings.\u201d<\/p>\n Lookonchain, an on-chain analytics firm, flagged<\/a> that the Tellor team deposited $2.4M worth of TRB to Coinbase near the peak of the pump, implying that the team may have been complicit in the alleged pump and dump scheme. Around $68M worth of TRB liquidations were processed amid the volatility, according to Lookonchain.<\/p>\n Tellor is yet to make a public statement regarding the violent market action.<\/p>\n Synthetix v2, the veteran DeFi project powering several decentralized derivatives protocols, incurred roughly $2M worth of debt as a consequence of the violent market action. The losses were suffered by Synthetix stakers.<\/p>\n \u201cYesterday\u2019s TRB pump was abused for some traders to enter into outside positions that left the debt pool -$2M,” tweeted<\/a> Synthetix\u2019s Adam Cochran. \u201cIn tail risk scenarios like yesterday the pool loses and socializes the losses.\u201d<\/p>\n Omer Goldberg, the founder of Chaos Labs, an on-chain risk monitoring platform, tweeted that Synthetix had denominated the open interest (OI) limit for its TRB pool in the token itself, suggesting the incident could have been averted if the limit was set using a value in fiat currency.<\/p>\n <\/p>\nSynthetix incurs $2M in debt<\/h2>\n
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