Scroll Token Faces Price Manipulation Accusation

The wallet of the Scroll founder has been accused of preemptively registering users for the forthcoming airdrop through price manipulation strategies.

This month, the Binance crypto exchange announced the launch of its 60th project, Scroll (SCR), on its Launchpool platform. The distribution of SCR tokens through Binance farming and other equitable methods has garnered substantial attention. Notably, over 1.56 million Binance users locked over 18 million BNBs on the BNB pool to farm the Scroll tokens.

Nearly 83k participants locked more than $2.29 billion in the FDUSD pool to farm the SCR tokens. Consequently, the scroll token airdrop has been one of the most eagerly anticipated recently.

Concurrently, the Binance exchange has disclosed its intention to integrate the SCR token with the Bitcoin and USDT trading pairs on its spot platform following the conclusion of the pre-market trading period on October 21.

Scroll Token Airdrop Scandals Revealed

The Scroll core team has been providing SCR token airdrops to their wallets in the recent past, as per on-chain sleuth alias Andrew 10 Gwei. The on-chain sleuth emphasized that the SCR token airdrop has directly impacted the wallets of the Scroll founder, which have received between 10,000 and 1 million marks.

“Most of the wallets in this top ten with over 200,000 marks are project wallets, including L0, Orbiter, Rhino, Owlto, Relay, and others.” As I understand it, these wallets are required to execute their bridge contracts and conduct tens of thousands of transactions. Andrew made this observation.

Even though the SCR token airdrop has yet to occur, the likelihood of the founders’ wallets receiving a substantial stake remains high.

The team of Sandy and Haichen Shen, the founders of Scroll, has been the subject of scrutiny for their apparent attempt to defraud the community by manipulating the forthcoming airdrop. Additionally, the SCR token airdrop was intended to improve the protocol’s decentralization by granting users governance powers.

As previously mentioned, the SCR token will have a total supply of 1 billion, with 15% of the total reserved for the airdrop. The Scroll contributors received 23% of the SCR tokens, with the remaining 17 percent reserved for the Scroll investors. The Scroll Foundation and Scroll’s ecosystem growth were allocated the remaining 35 percent and 10 percent, respectively.

Market Overview

Polychain Capital, Sequoia China, Bain Capital Crypto, Moore Capital Management, Variant Fund, and Newman Capital were among the investors who contributed $50 million to Scroll last year. The company pledged to provide a seamless zero-knowledge rollup on the Ethereum network.

Currently, the Scroll network has a stablecoins market cap of approximately $140 million and a total value locked of roughly $968 million. Pencils protocol, AAVE V3, and Tokan Exchange are among the most prominent DeFi projects on the Scroll network.