Researcher: Mirror Protocol Was Allegedly Set Up To Scam Retail Investors

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Terra analyst and supply of a number of whistleblower leaks, FatManTerra, has alleged that Mirror Protocol is a “farce designed to complement Do Kwon/VCs whereas manipulating governance and screwing over retail.”

FatManTerra recognized a pockets through Etherscan that deployed the Mirror Protocol yield farming good contracts. The pockets created the good contract 0xdb27, which FatManTerra alleges to be part of the Terra wormhole infrastructure and a liquidity pool for Mirror Protocol.

The contract definitely seems to be appearing as an LP pool for some protocol, however right now, CryptoSlate can neither verify nor deny that it belongs to Mirror Protocol.

FatManTerra highlights that this pockets:

“Owned a lot of the Mirror LPs on Ethereum. They thus farmed a lot of the MIR rewards, which might permit them to have a disproportionate say in governance choices.”

The pockets in query is listed as one of many prime 20 MIR wallets, based on CoinMarketCap. The info matches with FatManTerra’s subsequent accusation.

“I’ve discovered proof that this pockets and associated wallets attempt very onerous to make it appear to be MIR governance shouldn’t be majority-controlled by a single entity – they achieve this by splitting up MIR between a number of contemporary nameless wallets.”

The MIR held within the wallets recognized within the Twitter thread is seemingly all staked, giving them extreme voting energy within the MIR governance when mixed.

FatManTerra then identifies a number of wallets that interacted by bridging tokens throughout the wormhole, transferring mAssets from Ethereum to Terra, buying $750 million tranches of UST, and spreading MIR throughout a number of wallets equally to the beforehand described wallets.

Once more, FatManTerra alleges that somebody with excessive ranges of capital and entry to LP contracts was spreading MIR tokens throughout a number of wallets to make the protocol seem extra decentralized. The accusation is damaging to the repute of Mirror Protocol; nevertheless, the following a part of the thread modifications the course of his accusations.

FatManTerra means that one of many wallets he has been monitoring despatched tokens to a DAO tackle for which Do Kwon is an official advisor. He then describes how MIR funds integrated on this net of wallets have been transferred to Binance and KuCoin to be offered on the open market.

The accusations might be traced by reviewing the on-chain information which he claims:

“corroborates a lot of what the worker at the moment working at Bounce instructed me.”

FatManTerra concludes the thread by saying, ” I counsel that folks study the info and draw their very own conclusions wherever potential.” Hyperlinks to every of the wallets can be found within the thread, and the great thing about blockchain is that the knowledge is free for the world to see.

The query now’s whether or not these wallets might be formally tied to Do Kwon and Bounce Capital as he alleges and whether or not FatManTerra’s unnamed sources will come ahead publically to disclose extra info.

Replace Might twenty ninth, 2022: Fatman Terra offered some further ideas about this, noting that he doesn’t consider it was an inside job as there is no such thing as a definitive proof.

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