$7 Billion Cleanup in Altcoin: Heavy Manipulation Detected

L2Beat has detected heavy manipulation in the RAIN token data on the Arbitrum network, removing assets worth $7 billion from its Total Value Secured (TVS) metric.

L2Beat, an analysis platform closely monitoring the Layer-2 ecosystem, has taken a drastic step regarding the RAIN project operating on the Arbitrum network. Platform researchers announced that they have removed approximately $7 billion worth of RAIN (RAIN) tokens—held in multi-sig wallets controlled by the project team and not in circulation—from the network’s Total Value Secured (TVS) data.

According to data shared on social media, a significant drop occurred in Arbitrum’s total value data following the removal of this massive amount. While L2Beat researchers described the current situation as “plainly absurd,” they reported reaching serious findings that the token supply involves heavy manipulation. This development has brought about major question marks regarding the project’s transparency within the cryptocurrency community.

RAIN Token Investigation on the Arbitrum Network

Despite this large-scale correction, RAIN (RAIN) still maintains its status as the largest asset on the Arbitrum network, with $2.6 billion worth of assets. Even in this state, the token surpasses critical assets such as Ethereum and USDC, remaining the most dominant value on the network. The project, an Arbitrum-based prediction market protocol, became one of the three largest prediction protocols by market capitalization after pledging $100 million in liquidity last May.

The L2Beat team stated that the investigation into the asset in question is deepening and that efforts to ensure data accuracy are ongoing. The project’s rapid growth to a massive market capitalization has now come under tighter scrutiny following these data corrections. Experts warn that such a high supply under team control could mislead market data.