Lighter leaks insider airdrop! Nearly ten million LIT mysteriously distributed, sparking controversy online: DeFi projects are self-serving

Lighter’s LIT Airdrop Sparks Suspected Insider Manipulation, On-Chain Data Shows Few Wallets Dividing Over $26 Million, Igniting DeFi Fairness Controversy.

At the start of the new year, decentralized perpetual contract exchange Lighter launched the Lighter Infrastructure Token (LIT) airdrop plan, originally seen as a “reward model” in the DeFi community. Now, however, it is embroiled in suspicion of “insider manipulation.” On-chain analysts reveal that a group of wallets appears to have coordinated to pre-position and share over $26 million worth of LIT tokens, triggering strong community backlash and distrust.

Five Wallets’ Master Moves: $5 Million USDC Invested for 9,999,999.6 LIT

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 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 — worth approximately $26 million at current prices, representing about 1% of total LIT supply and 4% of circulating supply.

Even more startling is that these figures do not include additional gains from their LLP participation, estimated between $1 million and $2 million. On-chain tracking shows that over $7 million worth of tokens were quickly sold after the airdrop.

“Scores that normal players can’t achieve”: On-chain data exposes “self-enrichment pattern”?

@mlmabc specifically points out in the analysis that these wallets not only show high synchronization in fund input and token claiming but also collectively earned up to 500,000 airdrop points, far exceeding what typical players could earn with similar funds. He bluntly states, “Under normal circumstances, these wallets wouldn’t get 500,000 points,” implying this is likely a coordinated effort by the team or its affiliates.

The post quickly drew attention, with well-known on-chain investigator ZachXBT (@zachxbt) responding with a mocking meme “crime pays,” further fueling public skepticism and criticism of the incident.

Image source: X/@zachxbt

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

This incident sparked massive 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, seemingly generous, the team (26%) and investors (24%) still hold half of the total supply, prompting many to question, “Is this truly decentralized?”

Some users bluntly say, “Airdrops aren’t about rewarding the community, but about insiders dumping.”

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

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

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

Lighter has gained rapid popularity in recent years for its high-performance, low-fee Layer-2 perpetual contract trading experience, even ranking among the top three perp DEXes 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 transparency and anti-cheating measures, it ultimately becomes a game for a few capital players.

Who Should the Airdrop 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 truly reward early supporters” might be a more important question than valuation.

• This article is reprinted with permission from: 《Chain News》
• Original title: 《Lighter Explodes “Insider Airdrop Scandal”! 9,999,999.6 LIT Mysterious Distribution Sparks Debate, Community Criticizes DeFi Self-Enrichment Chaos》
• Original author: Elponcho