Binance-backed startup accused of wallet manipulation in APR token airdrop
aPriori, a trading startup backed by Binance founder Changpeng Zhao’s YZi Labs, is accused of a Sybil attack during its recent token airdrop. Allegedly, 5,800 wallets, seemingly controlled by a single entity, claimed around 80% of the airdropped APR tokens on BNB Chain. Preliminary blockchain data suggests these wallets were pre-funded with small deposits of BNB for gas fees days before the airdrop was officially announced. The APR token lost 61.194% of its value following the airdrop but has shown minor recovery recently. Controversy also surrounds allegations of insider token accumulations, with claims that hundreds of wallets potentially tied to aPriori staff received significant allocations. Despite these allegations, the startup, founded by former engineers from top trading and crypto firms, has garnered $30 million in funding from venture capital heavyweights including YZi Labs and Pantera Capital.
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Allegations of Sybil Attack in aPriori's Airdrop
aPriori, the trading startup backed by Binance founder Changpeng Zhao’s venture firm, YZi Labs, is under scrutiny following allegations of a Sybil attack during its recent token airdrop. A significant portion of the airdropped APR tokens on BNB Chain was reportedly claimed by wallets controlled by a single entity. The genesis airdrop, conducted in late October, aimed to reward early contributors, testnet users, and holders of partner NFTs such as MadLads and Moonbirds.
Concerning Wallet Behavior and Transactional Patterns
According to blockchain data on BSCScan, approximately 5,800 wallets exhibited connected transactional patterns and collectively claimed 80% of the total APR tokens distributed on BNB Chain. Between October 19 and 20, prior to the public airdrop announcement, these wallets received small BNB deposits — enough to cover gas fees for transactions. All wallets sourced their BNB from 13 source wallets, which remain unidentified. Such behavior mirrors a common Sybil attack tactic, where a single operator uses multiple wallets to claim rewards.
Timeline of Events and Community Reactions
aPriori publicly announced the airdrop date on October 22 for Ethereum and BNB Chain, but suspicious activity involving the 5,800 wallets began as early as October 19, suggesting prior knowledge of the distribution networks. Concerns were raised by pseudonymous investigator Nagiiiiseishiro, who called the pre-funding of thousands of wallets an "extraordinary red flag." Nagiiiiseishiro shared their analysis and data files on X (formerly Twitter) to support these claims.
Eligibility Criteria and Token Performance
Eligibility for the airdrop required participation in aPriori’s testnet token on Monad, an Ethereum-compatible blockchain. The testnet token had no monetary value, and the eligibility criteria were only disclosed during the public announcement. Despite the controversy, APR tokens showed signs of recovery, rising 3.79% in the past 24 hours but reflecting an overall 12.57% weekly decline, per CoinmarketCap. Trading volume surged 33.93% to $14.57 million, with the Relative Strength Index (RSI) at 21.67, indicating potential undervaluation. A sustained price above $0.29 could lead to upward momentum, while a drop below $0.28 risks revisiting local lows.
Community Concerns Over Token Distribution
Discussion on token allocation concentration intensified on X when user "Danny" alleged insider involvement in APR token distribution. According to Danny, hundreds of wallets linked to aPriori's internal accounts collectively received large amounts of APR tokens. The post identified some of the largest holders and claimed that aPriori accounts control 225,000 tokens via 450 wallets, referencing wallet addresses like 0x3f59…2fdEBB87.
aPriori's Background and Venture Backing
aPriori was developed by a team of former engineers from Jump Trading, Coinbase, and Citadel Securities. The project has raised $30 million from prominent venture firms, including YZi Labs, HashKey Capital, Pantera Capital, and Primitive Ventures. Initially, community members expected the airdrop to occur on the Monad network, but aPriori pivoted to Ethereum and BNB Chain, catching early supporters off guard.