Chinese cryptocurrency staking project Avatar has become one of the biggest whales of this altcoin with its purchases over the past few days.
Avatar raised $22 million in this cryptocurrency
Chinese cryptocurrency staking project Avatar has become the fifth largest Polygon (MATIC) whale, according to on-chain data. The wallet named 0xc7728354f9fe0e43514b1227162d5b0e40fad410 belonging to the project has purchased 22.37 million MATICs in the last few days. The staking project, which made headlines with massive purchases, buys MATIC for $22 million, surpassing Binance Hot Wallet2, becoming the fifth largest MATIC whale.
According to data from PolygonScan, the address has consumed 100,000 MATIC gas in the last 7 days and traded a staggering 117,000 MATICs yesterday alone. This increase in activity put Polygon average transaction fees above 700 gwei.
Multi-Level Marketing strategy worked
Multi-Level Marketing is a controversial marketing strategy similar to a ponzi scheme. Discussions are based on the survival of this system through references, as in the ponzi scheme. Typically, to join an MLM program, you have to pay fees and purchase products. Chinese cryptocurrency staking project Avatar offers a daily interest rate of 1% as part of its MLM strategy. CryptoNasss, one of the well-known analysts of Twitter, says that this is the event that brought Avatar to the top in MATIC gas consumption.
Describing itself as a decentralized, blockchain-based GameFi platform, Avatar is built on a staking mechanism that includes “magic boxes”. Users can stake their cryptocurrencies between 24 hours and 181 days, with the second option giving bigger rewards.
Chinese cryptocurrency project falls short on social media
There is little information about what the project does on Twitter, as it primarily operates on Chinese social media. The project ‘Avatar’ offers a referral staking protocol with apparently very high rewards. Some in the crypto community have warned of the project, explaining how it offers questionable returns.
Some advise caution when investing in MLM programs. The crypto market is known for its high volatility and many MLM programs come under criticism for their dubious operations.
How about Polygon (MATIC)?
Polygon price drops in double digits amid bulk trades from Avatar. The 10th largest cryptocurrency by market capitalization is down 9.15% in the 24-hour period of the purchase and 3.50% in value compared to last week.
The extremely volatile price movements of the cryptocurrency market have led to a surge in demand for MLM ponzis over the past few years. cryptocoin.comAs you follow, in March Shanghai police arrested 10 people in connection with a $16 million pyramid scheme involving cryptocurrencies.
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