An investigation into the ecosystem of the Lighter (LIT) token has raised concerns among investors. It all started after analyses of the blockchain revealed coordinated sales worth $7.18 million that took place since the Token Generation Event (TGE).
This activity has raised alarms about potential insider sales and possible transparency issues within the Lighter project, a decentralized finance (DeFi) protocol built on Ethereum.
Coordinated deposits and suspicious patterns obscure a more positive sentiment
Five interconnected wallets received nearly 10 million LIT from a recent airdrop, equivalent to about 4% of the circulating supply. These wallets have already begun selling significant portions of their holdings.
Analysts observe that the sequence of deposits, allocations, and token sales suggests a deliberate strategy, rather than organic market behavior.
Blockchain researcher MLM was the first to highlight this activity, noting that an entity deposited approximately 5 million USDC into Lighter's liquidity protocol (LLP) around April 2025.
Funds were equally split across five wallets, which collectively received 9,999,999.60 LIT (approximately $26 million at the time of distribution).
The main wallets used for deposits on LLP:
0x30cD78B301192736b3D6F27Bdad2f56414Eb6164
0x9A6D9826742f1E0893E141fe48defc5D61866caD
0x7c5d228B0EB24Ad293E0894c072718430B07Dfe3
0xc0562d68b7C2B770ED942D28b71Bc5Aa0209bbee
0xfdBf615eC707cA29F8F19B7955EA2719036044bf
The round allocation and uniform distribution have drawn attention, as they represent 1% of the total LIT supply and 4% of the circulating tokens. This grants the entity significant influence over the market.
In addition to tokens received via airdrop, the wallets also earned another $1–2 million from LLP yields, increasing the total value available to this entity.
Sales worth $7.18 million trigger alarm in the community
After the TGE, the connected wallets sold 2,760,232.88 LIT, equivalent to approximately $7.18 million. The prevailing opinion is that the methodical nature of these sales indicates intentional liquidation rather than reactive trading.
The blockchain investigator ZachXBT's comment suggests this activity might reflect opportunistic behavior by insiders. Meanwhile, analyst Henrik has raised concerns about the broader implications for the LIT community.
"If this is true, it's a serious concern for every LIT holder, especially given the lack of transparent communication from the Lighter team," Henrik wrote.
The central issue remains the silence from the Lighter team. Investors report the lack of official communications regarding token allocation, vesting periods, and distribution mechanisms.
Without transparency, it becomes difficult to distinguish between legitimate market activity and potential insider selling.
The controversy emerges at a critical time for DeFi, amid risks associated with crypto airdrops and token distributions.
Airdrops are designed to reward early users and encourage decentralized ownership. However, coordinated deposits and uniform allocations can allow a single entity to receive disproportionate rewards.
The reported sales are already exerting bearish pressure on the token price and fuel broader concerns about governance and team alignment. At the time of publication, Lighter's LIT token was down over 7% and trading at $2.53.
Further sales of the remaining 7 million LIT in these wallets could further destabilize the LIT market.
