Analysis: Suspected Insider Trading in PancakeSwap's Trading Competition Held in July

BlockBeats News, September 12, according to an analysis published by Cointelegraph, PancakeSwap claimed that the winners of its July trading competition were selected randomly, but blockchain records show that about half of the 1,700 winning wallets belong to interconnected wallet clusters.

This competition was the second of its kind held by PancakeSwap, where investors earned points by trading five Alpha project tokens from a certain exchange, including League of Traders (LOT), Bedrock DAO (BR), MilkyWay (MILK), NodeOps (NODE), and Moonveil (MORE). The total prize pool was valued at $250,000.

Cointelegraph's investigation found that at least 850 winning wallets were funded by other winning wallets, with these wallets transferring BNB among each other to conduct wash trading and meet the threshold requirements. A representative from League of Traders stated that these wallets are directly interconnected and were all selected, making the probability of such consecutive occurrences nearly zero. The prize distribution was not fair, and the winners appeared to be "manually selected" rather than randomly drawn.