Lighter exposes the "Insider Airdrop Scandal"! 9,999,999.6 LIT mysteriously allocated, sparking controversy, with the community condemning DeFi's self-serving chaos

At the beginning of the new year, the decentralized perpetual contract exchange Lighter launched the Lighter Infrastructure Token (LIT) airdrop plan, which was originally regarded as a “reward model” in the DeFi community. However, it is now embroiled in suspicions of “insider manipulation.” According to on-chain analysts, a group of wallets appears to have coordinated their actions to preemptively position themselves and share over 26 million USD worth of LIT tokens, sparking strong community backlash and distrust.

Five Wallets’ Master Move: 5 Million USDC Invested for 9,999,999.6 LIT Tokens

Well-known on-chain analyst @mlmabc posted a detailed analysis on platform X, pointing out that a group of five wallets collectively deposited a total of 5 million USD in USDC into Lighter’s liquidity provider pool (LLP) about nine months ago. These wallets subsequently received an extremely precise allocation of 9,999,999.6 LIT tokens — currently valued at approximately 26 million USD, accounting for about 1% of the total LIT supply and 4% of the circulating supply.

What’s even more eye-catching is that these figures do not include additional gains from their participation in the LLP, estimated between 1 million and 2 million USD. On-chain tracking shows that over 7 million USD worth of tokens were quickly sold off after the airdrop.

“Scores That Normal Players Can’t Achieve”: On-Chain Data Exposes “Self-Interest Pattern”?

@mlmabc specifically pointed out in the analysis that, besides demonstrating extremely high synchronization in fund input and token receipt, these wallets also collectively earned up to 500,000 airdrop points, far exceeding what typical players could earn with similar funds. He bluntly stated, “Under normal circumstances, these wallets shouldn’t be able to earn 500,000 points,” implying this is very likely a coordinated effort by the team or its affiliates.

The post quickly sparked attention, with well-known on-chain investigator ZachXBT (@zachxbt) responding with a sarcastic meme “crime pays,” further intensifying external doubts and criticism of the incident.

Community Outrage: From VC Favoritism to Broad Doubts About DeFi Airdrop Fairness

This incident triggered a huge backlash within the community, with many users criticizing it as typical “VC favoritism,” “insider self-enrichment,” and “pseudo-decentralized airdrops.” Although Lighter allocated 25% of tokens to early participants, which seemed generous, the team (26%) and investors (24%) still hold half of the total supply, prompting many to question, “Is this truly decentralized?”

Some users directly stated, “Airdrops are not about rewarding the community but about insiders dumping.”

24 Hours After TGE, Massive Capital Outflow: $250 Million Quickly Exits Platform

Following the token generation event (TGE), market reactions were intense. On-chain data shows that within just 24 hours after TGE, approximately 250 million USD was drained from the Lighter platform, seen as the result of airdrop players cashing out and arbitraging. Although the fully diluted valuation (FDV) of LIT once surpassed 3 billion USD, ongoing skepticism and market volatility have put significant pressure on its price performance.

Rising Layer-2 Star, Yet Unable to Escape Old Problems: Where Is the Fairness in DeFi?

Lighter has rapidly gained popularity in recent years for its high-performance, low-fee Layer-2 perpetual contract trading experience, even ranking among the top three perp DEXs by trading volume in 2025. However, this “airdrop scandal” again highlights the persistent issues in DeFi—fairness of airdrops, insider manipulation, and community trust crises.

So far, the Lighter team has not publicly responded to these allegations. This has led many to reconsider the “points-based airdrop” model: while it can effectively attract liquidity and user participation, without transparent mechanisms and anti-cheating measures, it ultimately becomes a game of capital for a few.

Who Should Airdrops Serve?

Lighter’s LIT airdrop was originally a test of decentralization and community governance, but it has fallen into a trust crisis due to suspected insider manipulation. This is not only a warning for a single project but also a moment for the entire DeFi ecosystem to reevaluate its reward mechanisms, fairness, and governance structures. For emerging protocols on the rise, whether “airdrops can truly reward early supporters” might be a more important question than valuation.

This article about Lighter’s “Insider Airdrop Scandal”—the mysterious distribution of 9,999,999.6 LIT tokens sparking controversy, with the community condemning DeFi self-enrichment—first appeared on Chain News ABMedia.