Plasma (XPL) co-founder Paul Faecks has strongly denied insider selling allegations following the token's plunge over the weekend. XPL, which soared to a high of $1.70 on Sunday, fell to $0.83 on Wednesday, losing more than half its value.
The sharp price drop sparked community anxiety. Some raised suspicions that the team had used an algorithmic selling strategy, Time-Weighted Average Price (TWAP), to allocate the market. This strategy divides large sell orders into multiple smaller orders, which are then executed at set time intervals to minimize market shock.
Paul Pax dismissed the allegations in a statement Thursday, asserting that "the project team has never sold a single XPL." He noted that investor and team stakes were locked up for at least three years, with Cliff holding one, and emphasized that all stakes remain locked at this time.
“While there is FUD about XPL spreading in the community, this is nothing more than unfounded speculation,” Fax explained. “We aim to build a long-term ecosystem and not pursue short-term profits.”
Industry experts note that prices have fallen by more than half since their initial surge, but they assess the likelihood of insider selling as long as the lockup structure remains clear. However, they emphasize the need for continued monitoring of the transparency of code and token distribution.
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