Divergence Ventures analyst Bridget Waters was involved in a $2.5 million airdrop scandal accused of insider trading. At the recent event of an altcoin project, hundreds of ETH were transferred to wallets. Transactions were detected and disclosed by a user with the pseudonym “Gabagool.eth”. Community officials of the project say the accusations are not entirely true…
“Insider trading” scandal in altcoin project airdrop!
Venture capital firm Divergence Ventures was accused of insider trading when 702 ETH fell into the wallet of Bridget Waters, one of its analysts, from a recent airdrop that distributed 30,000,000 tokens by altcoin project Ribbon Finance in May 2021.
Ribbon Finance is a protocol that creates packaged financial instruments that use a combination of derivatives to achieve a risk-return objective, such as taking risks, increasing returns, or protecting capital. Divergence Ventures is a venture capital firm that has invested $25,000 in Ribbon Finance.
Token airdrops are usually given to early investors or for completing simple social media tasks and are allocated to any wallet that completes a certain type of transaction. It is possible to take advantage of this with “farming”, which involves interaction with protocols that are said to issue a token from multiple wallets. Airdrops also increase a circulating supply of cryptocurrencies or tokens, promoting trade and improving the visibility of the project. The more people who own a cryptocurrency, the more likely it is to see adoption and an increase in its value.
The 702 ETH deposited in Waters’ Ethereum wallet came from a number of different wallets. The wallets contain Ribbon Finance’s token RBN, which was exchanged for ETH and then credited to Waters’ account. This is also known as a Sybil attack…
Ribbon’s ‘Sybil’ attack explained
After the administration rejected a proposal to make the RBN transferable in June, a runoff was held, with 99% of voters voting in favor of the proposal. This offer also made possible a reward of 10 million RBN, which can add liquidity to an RBN-ETH liquidity pool at Uniswap (UNI).
The Divergence Ventures airdrop event was first noticed by a user using the alias “Gabagool.eth”. Gabagool had bought a significant amount of RBN and was waiting in the Uniswap v3 pool, observing what people were doing with their airdrops, observing the trading of wallets when he noticed 17 ETH sales whose proceeds were sent to another new wallet.
- The new wallet contained ETH, all from wallets that received a Ribbon airdrop and sold a stripe airdrop.
- The main wallet was linked to a wallet with the Ethereum Name Service domain, identifying the owner as Bridget Waters, and received a backlash from the crypto community.
Divergence sent 702 ETH back to Ribbon Finance, and Ribbon community manager Julian Koh defended the employee in question, saying that the blame was on the organization’s founders, not Ms. Waters, a college student. Ribbon Finance denied insider trading allegations in response to allegations made by the crypto community, saying that Divergence Ventures knew about the airdrop but did not disclose eligibility criteria.
DeFi governance issues highlighted
cryptocoin.com This event highlights the fragility of DeFi on-chain governance and the reliance on common sense and social etiquette among DeFi users. The SEC recently signed an agreement with crypto analytics company AnChain. AnChain will provide them with Blockchain data and technology to analyze smart contracts. This will give the SEC more insight into the rapidly growing field of DeFi, which grew 450% in 2021, with the combined value of all listed protocols at $121 billion by August 2021.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.