Backpack denies allegations of BP token manipulation… “No insider involvement”

Crypto exchange Backpack has flatly denied the possibility of insider involvement in allegations of price manipulation involving its native token, BP.

According to Coincu on the 24th (local time), Backpack said regarding unusual BP token trading on the decentralized prediction market Polymarket that “those actors are not members of the internal team.”

After abnormal betting patterns were detected in BP-related markets on Polymarket, some community members raised the possibility of insider involvement. The controversy spread as trades were repeatedly made to artificially raise the probability for a specific price outlook.

Polymarket is a prediction market structured around betting on the outcomes of real-world events, and it can influence market sentiment by affecting “probabilities,” rather than the price itself. This has been cited as an issue because activity within prediction markets can affect investment decisions in the actual spot market.

Backpack directly denied suspicions of insider involvement in this case, drawing a clear line. The project’s move to state its position before the allegations spread has been interpreted as an attempt to prevent damage to market confidence.

The industry views whether insiders were involved as the key point of contention. Manipulation by outside actors may be seen as a market-structure issue, but insider involvement could have a fatal impact on the project’s credibility and governance.

So far, the specific method of the trades and related wallet information have not been disclosed. Backpack has also not outlined any plans for further investigation or response measures.