Seo Sang-min, CEO of Kaytn Foundation expressed disappointment with Kracker Lab’s bulk sale of KLAY. On March 9, Seo apologized to the Klaytn community and revealed that both the foundation and the community were aware of the incident at the same time. Controversy surrounding Kracker Lab’s decision to sell massively began on March 8 after CoinSagwan Academy operator Byun Chang-ho disclosed the transactions involved.
Xu Xiangmin – CEO Kaytn Foundation
Xu said:
“We take this matter very seriously and are seriously discussing measures to prevent similar incidents from happening again.”
However, he did not mention why the Kracker team used remixes to cover up the token sale, nor did they mention whether they used inside information related to the foundation’s redesign of Talknomics.
In a community post about the redesign of Talknomics, Seo mentioned the “use of insider information prohibited” and said:
“The Klaytn Foundation and all members of the Crust Universe are committed to not using inside information to trade. We have added an additional commitment to the Talknomics redesign proposal.”
The incident raised concerns about insider trading and the need for transparency in the cryptocurrency market. The organization has not provided further updates on the matter.
Klaytn, a public blockchain focusing on metaverse, gamefi, and creator economy, has become the dominant blockchain platform in South Korea since its official launch in June 2019. With an international base in Singapore, Blockchain is now actively expanding its global reach through various business initiatives. To support the expansion, Klaytn has established the Klaytn Growth Fund, managed and disbursed by the Klaytn Foundation, a Singapore-based non-profit organization established in August 2021. The purpose of the fund is to promote the development of the Klaytn ecosystem and its affiliated businesses.
Klaytn Foundation Faces Heavy Criticism After Announcing Insider Sale That Causes KLAY Price to Plummet
KLAY has recently experienced a sharp price drop after insiders at Crust Internal Corporation (CIC) broke the news of a massive sale of KLAY. The news came as a surprise to many, as the Klaytn Foundation had just announced a strategy to destroy non-negotiable Klay shares, driving the price of KLAY up 40%.
After the zero-reserve announcement, the price surged, giving hope to investors who lived through last year’s FTX crisis. However, recent news of insider trading caused the price of the altcoin to plummet, losing all profits.
#clayton Foundation under fire after insider trading claims cause $ Clay Token plunge @azcoinnews https://t.co/BBCijBbGxJ
— Kyptos (@azcoinnews) March 9, 2023
Digital asset market information channel operator Byun Chang-ho is suspected of insider trading. He alleges that KLAY continued to sell heavily in several accounts managed by Kracker Labs, an internal business created by Crust employees.
The Klaytn Foundation has asked Kracker Labs for an explanation and is taking the situation seriously. The accusation of insider trading has led to a sharp drop in investor confidence, and they are cautious about investing in Clay in the future.
The case highlights the importance of transparency and accountability in the cryptocurrency market. As the market continues to evolve, companies and joint ventures must be transparent in their operations to maintain investor confidence.
Overall, the Klaytn Foundation needs to effectively and clearly handle this situation in order to regain investor confidence and trust in the KLAY token.
KLAY 4-hour price chart | Source: Tradingview
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according to Kyptos
