Analysis: The trading competition held by PancakeSwap in July is suspected of insider trading.

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According to a report from Cointelegraph on September 12, PancakeSwap claims that the winners of its trading competition held in July were selected randomly. However, blockchain records show that among the 1,700 winning wallets, about half belong to interconnected wallet clusters. This competition is the second of its kind held by PancakeSwap, where investors earn points by trading five Binance Alpha project tokens, including League of Traders (LOT), Bedrock DAO (BR), MilkyWay (MILK), NodeOps (NODE), and Moonveil (MORE). The total prize pool for the competition is valued at $250,000. Cointelegraph's investigation found that at least 850 winning wallets were funded by other winning wallets, which transferred BNB to each other for wash trading to meet the threshold requirements. A representative from League of Traders stated that these wallets are directly interconnected and all were selected, with the probability of consecutive occurrences being close to zero. The prize distribution is not fair, and the winners appear to be 'artificially selected' rather than randomly drawn.

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