• Meld responded to accusations of insider trading, denying any wrongdoing
• TapTools conducted on-chain analysis and identified a series of large token sales from an address owned by a private sale token holder
• Meld stated it has no control over the actions of private sale token holders
Cardano-based Meld protocol has responded to allegations of insider trading, denying any wrongdoings on their part. TapTools, a blockchain analytics company, conducted on-chain analysis and identified a series of large token sales from an address which they believed was controlled by an insider.
The address had sold tokens worth 1.24 million ADA, or about $405,000 at today’s price. Additionally, there were two other associated addresses that also sold tokens without having purchased any, which amounted to 1.04 million ADA, or around $340,000. TapTools asked where the tokens had come from and suggested that the address was connected to an insider.
In response, Meld stated that the address belongs to a private sale token holder, and that they have no control over the actions of private sale token holders. The company further clarified that none of their staff were involved and had not benefited from the token sales.
Meld is a DeFi, non-custodial banking protocol and is a part of the Cardano ecosystem. It focuses on providing users a secure and decentralized way of managing their funds. It has a native token, MELD, which is used to pay for transactions on the platform.
The news of potential insider trading sparked a wave of panic in the Cardano community, with many users concerned that the allegations could negatively impact the project. Meld has been quick to respond to the allegations, and their denial of any wrongdoing should provide some reassurance to the community.