Cryptocurrency staking project Avatar has become the fifth-largest holder of polygon (MATIC), accumulating 22 million tokens worth $22.5 million.
Details about the project remain scant on social media. News reporter Colin Wu says it is based in China and at least one industry observer suggests Avatar is a multilevel-marketing (MLM) scheme in which users generate significant rewards for every person they successfully refer.
Avatar, which labels itself as a decentralized on-chain perpetual GameFi platform, is centered around a staking mechanism that involves “magic boxes.” Users have the option of staking cryptocurrency tokens for between 24-hours and 181 days, with the latter option yielding a greater reward.
The anonymous nature of cryptocurrencies has led to a surge in MLM schemes over the past few years. In March, Shanghai police arrested 10 people in connection with a $16 million pyramid scheme that involved cryptocurrencies.
MATIC is currently at $1.16, down by 9.95% over the past 24-hours according to CoinDesk data.
This story originally appeared on Coindesk