These promotional airdrops — designed to be distributed to thousands of wallets to raise awareness of a crypto project — ended with the tokens funneling to just a handful of wallets, suggesting potential manipulation of the system.

Blockchain advertising solution SaTT alleged to Cointelegraph that a promotional airdrop it paid CMC to conduct in Dec. 2022 ended with 84% of the airdropped tokens funneling to just 21 wallets.

However, SaTT claimed that shortly after the airdrop was distributed, 20,953 wallets “automatically transferred the tokens to 21 wallet addresses” which then sold off their token holdings days later around Dec. 10, netting around $142,000 for those 21 wallet owners.

The sell-off plunged the price of SATT by 70% between the end of the airdrop on Dec. 1 to when the wallets sold their tokens on Dec. 10. A similar experience was shared by TokenBot co-founder Shaun Newsum, who told Cointelegraph that it did a similar CMC-led airdrop of its TKB token on Dec. 9.

Newsum said CMC provided its 30,000 airdrop winners but he chose to “stagger” the airdrop “just in case something happens.” TokenBot sent out its tokens to a batch of 4,000 winners to start, but around 3,300 ended up sending the funds to one wallet, said Newsum.

Newsum said around $20,000 was lost by TokenBot in the incident and the project had to deploy more liquidity from its treasury. Newsum however said he has since received an apology from CMC and was told that it was investigating the airdrop and would return with an updated winners list for the project.

In its investigation, SaTT claims to have found another 18 tokens or nonfungible tokens (NFTs) airdrops conducted by CMC since Jul. 2022 that were also allegedly “infected by fraud” to the tune of $6.6 million.