Mystiko Network Faces Insider Trading Allegations After Controversial Airdrop

cryptonews.com:

Following its second airdrop, Mystiko Network has been entangled in insider trading allegations and has raised questions about the fairness and transparency of its token distribution.

The controversy has sparked much debate within the cryptocurrency community, as two specific wallets received disproportionately large allocations compared to most participants.

Mystiko Network’s second airdrop, intended to distribute XZK tokens to its community, quickly turned controversial when it was discovered that two addresses, “0xBca” and “oxda8,” received 59,570 XZK ($1,787) and 60,325 XZK ($2,170), respectively.

In stark contrast, most other participants received between 400 and 5,740 XZK, valued at up to $172.

This stark disparity in token allocation has led to accusations of insider trading and unfair practices, and widespread community outrage has erupted over the perceived injustice.

In response to the allegations, Mystiko Network’s Discord moderator, Ellie, dismissed the claims as “baseless” and referred to the network’s public response on Twitter.

“You can see our public Twitter response. It’s completely baseless, and it takes 1 search on the blockchain to see it’s not true,” said Ellie on the project’s Discord channel.

According to Mystiko Network on X, the two wallets in question belonged to early protocol contributors who met the established criteria for larger rewards.

The team confirmed the existence of the contentious addresses and reviewed their transaction histories. They reiterated that the addresses met the criteria for early contributors and had conducted multiple transactions within the network.