Vigilante uncovers venture capitalist manipulating crypto airdrop

Twitter vigilante Gabagool.Eth has uncovered dubious activity as part of a marketing giveaway of Ribbon tokens via an airdrop.

Giving away tokens in this way is marketing practice where random consumers get a reward, helping to build up the hype.

As the Ribbon tokens were distributed, Gabagool spotted two interesting developments. The first one was that the tokens could not be cashed out until October 8.

When October 8 came, another interesting development transpired. Gabagool saw that the network of 36 wallets that had received the original tokens had exchanged them for other more popular ones, Ethereum (ETH). According to Gabagool, the 36 wallets were owned by the same person (or people) to create marketing hype.

Gabagool found out the identity of owner of the Ribbon tokens. Bridget Harris was a junior employee at Divergence Ventures, a venture capital firm.

The firm has an active portfolio in more than 50 cryptocurrencies, Wired wrote in the original article which tracks the activities of Gabagool and other Twitter vigilantes.

Although Divergence denies insider trading, Gabagool highlighted that because of her position, the Divergence Ventures’ trader may have had some inside knowledge of the airdrops. Divergence Ventures did later add that it may have “crossed a line”.

Gabagool’s investigation is not one that was intended to discredit Divergence Ventures. It is however an example of how the Twitter and crypto communities are ever vigilant in the even smallest aberrations in trading behavior, thanks to the accountability of the public ledger.

According to CoinDesk, Divergence returned the ETH to the project’s treasury, and the Ribbon community is now deciding what to do with the funds.

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Updated: 11/16/2021 — 13:00