DWF Labs Speaks Out About The Accused Token Sale

Key Points:

• Andrei Grachev, a representative of DWF Labs, has spoken out after many rumors that the company is selling Floki tokens.
• Grachev said the reason for moving tokens to exchanges is that market makers have to prepare for emergencies.
• However, information about the investment fund has not been revealed much, making the community suspicious.

DWF Labs is currently one of the most active investors in the crypto market at the moment. However, there are some doubts that the company is having shady transactions, and the DWF partner has spoken out about this.

In response to Twitter users questioning DWF Labs’ token selling and wash trading series, DWF Labs managing partner Andrei Grachev tweeted that DWF had purchased a total of 81 billion Floki and sent them all to the exchange. He proved that there was no sell-off, 57 billion Floki have been sent to the on-chain wallet.

In addition, he also said that it is the most stupid choice for market makers to keep tokens in their wallets because their job is to create markets, provide depth, and improve order execution, rather than doing nothing.

The reason for moving tokens to exchanges is that market makers must be prepared for emergencies and extreme liquidity, having available inventory for 24/7 liquidity purposes. Furthermore, market makers and VCs should leverage all legal and available solutions in order to maximize value for their portfolio projects and profitability, this is not wash trading.

Previously, CryptoGPT had just raised $10 million at a $250 million valuation from DWF Labs. But more notably, the DWF, under the agreement, also became the market maker of CryptoGPT.

If you follow the fundraising activities in the market, you are probably familiar with investment funds such as A16Z, Coinbase Ventures, Binance Labs, Paradigm or Pantera, Multicoin, and many others. But DWF Labs is a complete stranger, it is difficult to find the name of this company on the list of VCs so far. Not only we but also the global crypto community are wondering who DWF Labs is and if they really make the millions of dollars they claim.

Andrei Grachev, as introduced above, is a managing member of DWF Labs. This character seems to be the only media representative of the fund at the moment. It’s hard for the community to find other characters with a title like “DWF Labs CEO” who have a voice on social media.

Whether this investment fund is really an emerging unicorn has not been determined, but it can be said that the fund is currently very actively involved in projects with large investments.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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