Paul Faecks, founder of Plasma, has strongly denied allegations of insider selling related to the recent price plunge of the project's token, XPL. He stated, "No team member has sold any XPL," and emphasized that team and investor holdings are locked up for three years, with a one-year grace period (cliff).
Suspicions arose last weekend when the XPL token fell by more than half from its all-time high. Plasma officially launched its mainnet beta on September 25th and simultaneously released its own token, XPL. The project aims to be a Layer 1 blockchain capable of processing stablecoin payments faster and more affordably.
Immediately after its launch, the price of XPL soared to a high of $1.70 (approximately 2,363 won) on Sunday, but then began to decline, falling to $0.83 (approximately 1,154 won) on Wednesday. This represents a loss of more than 50% of its value in just three days.
As market anxiety over the price plunge grew, some claimed that insiders had sold off XPL in large quantities. Paul Pax himself strongly denied this, dismissing it as "a groundless rumor being spread."
Currently, Plasma is focusing on building a project ecosystem and expanding its use cases. Some believe that XPL price volatility is a temporary phenomenon due to initial liquidity shortages. However, there are still many voices within the community calling for transparent disclosure of selling entities.
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