Blockchain analysts have accused AltLayer\u2019s head of growth, Dorothy DeFi, of gaming the project\u2019s airdrop to turn a profit of at least $200K.<\/p>\n
Dorothy denied engaging in insider trading when contacted by The Defiant, saying that the wallet in question belonged to a friend.<\/p>\n
The allegations come a day after AltLayer, a project offering services to allow developers to quickly spin up rollup networks, airdropped<\/a> 300M ALT tokens worth $90M to over 40,000 eligible DeFi participants.<\/p>\n Pseudonymous sleuth Purif was the first to sound the alarm. Pointing to<\/a> several suspicious NFT sales \u2013 two OG Badges and several Oh Otties, both part of collections eligible to claim the lion\u2019s share of the airdropped ALT tokens.<\/p>\n <\/p>\n The first of the OG Badges was sold for 7.77ETH ($17,500) just minutes before AltLayer\u2019s public snapshot announcement. The second badge and two of the Oh Otties were offloaded soon after the announcement.<\/p>\n The claimed ALT tokens, worth $206,000, were sent to Binance, likely to be sold.<\/p>\n In the midst of the controversy lies Mulan0x, a friend of Dorothy, and allegedly the owner of the wallet that traded the OG Badges and Oh Otties.<\/p>\n A second crypto sleuth, Blur Crypto, also analyzed<\/a> the situation in-depth, noting the suspicious behavior. Dorothy told The Defiant that she gifted an OG Badge to Mulan0x one year ago, and acquired a second one on Dec. 24.<\/p>\n The concern comes since the NFTs were sold within minutes of the public snapshot announcement.<\/p>\n Dorothy told The Defiant <\/em>the sales\u2013 calling the timing coincidental \u2013 happened in order to purchase a Pudgy Penguin NFT. Onchain data shows that the wallet did purchase a Pudgy Penguin on Jan. 17, going on to sell it the next day for a tidy 5 ETH profit.<\/p>\n <\/p>\n Start for free<\/a><\/div>\n <\/p>\n Blur Crypto spoke<\/a> to Dorothy and Mulan, both of whom rejected claims of insider trading, which led the investigator to conclude, \u201cIt’s up to you to decide what to believe. Nothing more from me on this.\u201d<\/p>\n Dorothy has since posted<\/a> her version of events. The team at AltLayer has not made any official comments regarding the allegations.<\/p>\n\n
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