Lighter's CEO responds to "FUD" allegations as LIT prices drop 8% in 24 hours.

Lighter's LIT Token had a spectacular launch, attracting significant attention from the start. However, this momentum didn't last long as the price quickly plummeted after news emerged of a possible Token Sale in the past 24 hours.

This information caused investor anxiety, leading to significant market volatility and raising many questions about transparency and the initial Token distribution process.

Lighter's CEO speaks out about concerns.

Concerns intensified after reports surfaced that Lighter had secretly sold nearly 10 million LIT to five different wallets during the Airdrop. As the rumors spread, Lighter CEO Valdimir Novakovski publicly clarified the situation on Discord .

Novakovski explained that in 2024, Lighter signed a contract with an external liquidation provider. Under this agreement, the partner would provide 5 million LIT to the LLP liquidation fund during a closed-circuit testing phase. According to the CEO, the wallets that were previously suspected of being fraudulent actually belonged to this liquidation partner, and were not sold internally within the company.

“There is no financial or personal relationship between any member of Lighter and this provider partner. They committed to support us even before we had data on the LLP’s performance. Ensuring liquidation from the outset is crucial, so we had to acknowledge this contribution and accept this risk for the newly formed ecosystem,” Vladimir Chia .

Outflows of funds dominated in LIT.

Despite explanations from the project team, the market reaction since the Token 's listing has remained negative. Concerns, unease, and doubt – or "FUD" – continue to pervade trading channels. Many short-term investors appear unconvinced, choosing to sell off Token due to lingering doubts about transparency.

This trend is also clearly reflected in technical indicators. The Chaikin Money Flow indicator has fallen below the downtrend line, signaling a continuous outflow of money. Selling pressure is currently outweighing accumulation, indicating that investors are withdrawing quickly without waiting for clear signs of a recovery.

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Macro momentum indicators also show a cautious trend. The On-Balance Volume (OBV) indicator is trending downwards, consistent with the recent price decline. OBV indicates the flow of volume, helping to confirm trend strength during periods of high volatility.

In the case of LIT , both price and OBV fell simultaneously. This development confirms that the market is still in a genuine downtrend, not just short-term profit-taking. The weak volume also indicates a hesitant sentiment, with few people willing to buy at this time despite the project having a solid foundation.

Short-term outlook for LIT prices

LIT prices have fallen 8.5% in the last 24 hours, trading around $2.43 at the time of writing. This decline stems from negative sentiment, continuous outflows of capital, and unfavorable technical factors. In the short term, the main trend remains under pressure unless buyers regain the upper hand.

The $2.43 price level is currently Vai as the nearest support. If LIT fails to hold this level, the price could continue to fall further. If selling pressure remains dominant, LIT could test the next support zone at $2.31, where buyers may emerge to limit the decline.

To reverse the downtrend, LIT needs a strong rebound. LIT must regain the support zone of $2.66 to recover recent losses. If the price remains above this level, LIT could advance to the $2.82 area, signaling a return of confidence and helping to stabilize the market.