Mystiko Network Faces Allegations of Insider Trading During Second Airdrop

Mystiko Network’s second airdrop has been hit by allegations of insider trading, as a few select wallets received more airdropped tokens than regular users. Blockchain reporter Colin Wu first raised suspicions about newly created addresses and large token distributions. The second airdrop was intended to reward holders of vXZK, the ERC-20 wrapped version of the XZK governance token. According to on-chain data, the official Mystiko-Vault Community Incentives wallet moved 20 million XZK tokens to 1,487 newly created addresses using Multisender on July 5. These addresses then received gas funds from major exchanges like OKX or Bybit just a day after receiving the airdrop. The community has accused insiders of orchestrating these actions to benefit from substantial token allocations. Mystiko Network has responded to the allegations by launching an internal investigation and reviewing the transaction history of the addresses in question. The team has stressed that these addresses met the criteria for early contributors to the ecosystem. This is the second airdrop controversy in two months for Mystiko Network, which secured $18 million in a funding round led by Sequoia Capital India in March. Despite the controversy, the network has attracted over 150,000 users and over $276 million in transaction volume since its mainnet launch in March 2023.