DWF Labs, an investment firm, has been making headlines in recent months with its active investment activity in the altcoin space. However, the company has been the target of criticism lately. Here is why…
“Dump” accusation for altcoin investor DWF Labs
cryptocoin.com As we have also reported, DWF Labs was on the agenda by investing in many altcoins. However, the company has come under criticism for its investment strategies, especially for dumping the tokens after announcing the investment news. The founder of the company, Andrei Grachev, is also accused of fraud in Russia.
The criticism came from Nay Gmy, who used Twitter to voice his concerns about DWF Labs. Nay Gmy claims that DWF Labs dumped the tokens after announcing the investments, which could have a negative impact on the price of these tokens. Nay Gmy also claims that the founder of DWF Labs has a history of fraud in Russia.
DWF Labs responded to the allegations
Nay Gmy’s accusations prompted DWF Labs to respond. The company denied allegations of selling the tokens, stating that they are not “money only” investors, but rather partner with portfolio projects. DWF Labs also stated that they have been a traditional financial market maker since 2016, making hundreds of millions of dollars doing so.
However, Nay Gmy’s concerns do not end there. The Twitter user also claims to have researched on-chain data and found some irregularities in DWF Labs’ investment activities. According to Nay Gmy, DWF Labs’ investment strategy involves purchasing tokens with multiple small transactions of $50-100k once a day, or larger transactions of up to $5 million per transaction. The company then deposits most of the tokens on centralized exchanges.
Moreover, Nay Gmy claims that DWF Labs has invested more than $200 million in liquid tokens alone in the last six months. Tokens held on-chain are mostly in a wallet with a total of $12 million. Nay Gmy also claims that the investments reported by DWF Labs do not match the on-chain data, and that the firm may be pocketing the amount between the amount they pay for the tokens and the price they sell.
Which altcoins are at risk?
DWF Labs’ investment activities have caused concern among crypto enthusiasts and investors. The fact that the founder of the company was accused of fraud in Russia also raises suspicions. The company’s response to the criticism does little to address these concerns, as the accusations made by Nay Gmy highlight some of the irregularities in DWF Labs’ investment activities. Nay Gmy’s tweet includes altcoins that the company says it has been making since November. However, it points out that these do not match the on-chain data. These tokens have been SSX, BFC, BERRY, MRST, CTC, SIX, WOM, VIX, APM, ADP, BIOT.
DWF Labs’ investment activities have come under scrutiny, and the company’s response to criticism does little to address the concerns raised. Investors and crypto enthusiasts will be keeping a close eye on DWF Labs’ activities over the coming months to see if there are any other irregularities in the firm’s investment strategy.
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