Avatar, an alleged Multi-Level (MLM) GameFi project, has just been discovered to be the world’s 5th largest MATIC holding “whale”.
According to Wu Blockchain, Avatar project address 0xc7728354f9fe0e43514b1227162d5b0e40fad410 has accumulated 22.37 million MATICs in the past few days, surpassing Binance’s Hot Wallet2 as the world’s 5th largest MATIC holder.
This wallet has consumed 100,000 MATIC gas fees in the past 7 days, at one point pushing Polygon’s average gas level to over 700 gwei. The number of transactions of the project on February 12 was up to 117,000 transactions.
— PeckShieldAlert (@PeckShieldAlert) February 13, 2023
The amount of information about the project is still quite meager, some sources say that Avatar is based in China and has a reputation as a multi-level business model (MLM). Participants are rewarded according to the number of people they successfully refer.
Meanwhile, Avatar positions itself as a GameFi project and has a staking mechanism that involves a “magic box” where users can optionally staking tokens within 24 hours to 181 days. It is reported that this MLM project pays an APR of 1%/day.
This news is causing extreme panic in the community. The reason is that the anonymous nature of crypto has led to the inevitable increase in ponzi schemes over the years. These projects have thus become “whales” and are fully capable of navigating prices. Avatar from here will be a name that investors need to watch carefully.
In 2020, China dismantled the PlusToken ponzi project and seized up to 4.2 billion USD in cryptocurrency.
MATIC is currently at $1.18, down more than 8% over the past 24 hours according to data from Binance.