The pancakeswap trade competition should reward random winners, but blockchain notes show that about half 1,700 winning purses are part of the connected clusters.
The competition is the second of its type and structured for investors to earn points by trading the tokens of five sponsors from the Binance Alpha program: League of Traders (Lot), Bedrock Dao (BR), Milkyway (Milk), Nodeops (Node) and Moonveil (more).
In order to accumulate points, trading needs to be carried out in the pancakeswap, the leading decentralized exchange (DEX) by the total amount locked in the chain established by the BNB.
In its campaign IntroductionPancakeswap said the winners who reached a three-tier threshold volume would enter into a “random lucky draw.”
Despite the format reward of the lottery style, Cointelegraph learned that at least 850 purses selected as winners were funded by other winning purses. These dominates were moved to each other BNB (Bnb), the native cryptocurrency of the BNB chain, which is used to wash trading sponsor tokens to reach the threshold. BNB is then passed to the next wallet to repeat the process.
“The purses are directly connected to each other, and they are selected. The opportunity to occur in the next is close to zero,” said a League of Traders representative Cointelegraph.
“The (prizes) are not distributed fairly to the participants,” said the representative, adding that the winners appear to be “selected” instead of randomly drawn.
Pancakeswap did not respond to Cointelegraph’s request to comment on this story. The cointelegraph also reached four other sponsors and did not receive a response before published.
Pancakeswap’s $ 250,000 trading lottery
Pancakeswap has remained the center of the BNB ecosystem since gaining traction in 2021, when high Ethereum gas fees pushed entrepreneurs into cheaper successors.
The League of Traders told Cointelegraph that Pancakeswap has recruited Binance Alpha projects to sponsor the second trading contest, including each placement of $ 50,000 to fund the prize pool. Binance Alpha is a platform that provides investors in early access to nakalist tokens.
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The League of Traders and four other Binance Alpha projects raised the reward value to $ 250,000.
To participate in the trade competition, investors need to accumulate trading volume for the sponsor to the pancakeswap token. The pool is divided into three tiers: $ 2,000, $ 5,000 and $ 10,000.
A participant can take part in the random draw for all five tokens but cannot be selected for the same token more than once. That will bring the highest possible reward for a purse at $ 2,500.
At first, the trade competition was set to run from July 7 to July 27, but it was expanded It grows 5.
Random Random Blockchain wins tied pancakeswap
The Pancakeswap blog post states that the winners will be selected randomly, but the blockchain notes suggest otherwise.
Get a purse 0x521 … 3E670For example, a tier three winners who received 21,730 many tokens from the competition Reward Wallet on August 7. The log of this purse activity shows that it exchanged a lot of WBNB back -back to Pancakeswap on July 24. When the trade threshold met, it converted the tokens back to the BNB, which was then passed to another winner.
This winner was able to finance the trade wash with $ 2,130, or 2.7 BNB at that time. Less than one minute before circular trade starts, it received BNB from another tier three winners more (0x463 … 5D040).
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A look at the more winner’s wallet activity showed the same pattern. It received BNB from a wallet trading wallet that was eventually selected as a winner, and it used those funds to supply its own subsequent trade for another sponsor token. Again, when it finished washing the trading, it sent the remaining BNB to another purse that became a winner.
In a document shared with the cointelegraph, the League of Traders identified 852 winners suspected of belonging to the purse.
“They used the same funding source … And when the time to distribute the prize came, then all these chain wallets received the prize, which was inevitable,” the League of Traders said.
Pancakeswap promotes the next trade competition
For projects that put thousands of dollars to sponsor the competition, the controversy features concerns about transparency on one of BNB’s flagship platforms.
Pancakeswap recently ended its third trading competition. At this time, it was not focused on Alpha Alumni and featured six tokens and $ 300,000 in rewards.
This announced In X, “2,040 random lucky winners are rewarded with their project tokens. Check your purse to see if you are one of them.”
Pancakeswap added that the next trade competition is “coming.”
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