Following a substantial price drop in Plasma’s digital currency, XPL, with a value decrease exceeding 50%, Paul Faecks, leading the Plasma project, has addressed the community’s concerns.
Faecks asserted that no core team members have liquidated their XPL holdings. He explained that both the team’s and investors’ tokens are subject to a three-year vesting period, with the initial unlocking scheduled after one year.
Plasma unveiled its blockchain solution and the corresponding XPL token on September 25th. The project is geared towards streamlining stablecoin payments by accelerating transaction speeds and lowering expenses.
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Following its launch, the token’s value experienced a significant downturn, triggering inquiries within the community regarding potential insider trading or sales.
An X platform user, identified as @ManaMoonNFT, highlighted a wallet potentially linked to the Plasma team, noting that it moved over 600 million XPL tokens to cryptocurrency exchanges prior to the official launch. This observation spurred speculation regarding possible undisclosed sales that may have overwhelmed typical market activity.
Another user on X, @crypto_popseye, leveled accusations against the Plasma team and trading entity Wintermute, suggesting they artificially drove the price down. The user voiced criticism of the project’s overall performance and expressed doubts concerning its long-term viability.
In response to these concerns, Faecks made it clear that Plasma has no official association with Wintermute and has never collaborated with the firm. He stated that the organization only has access to publicly available information regarding Wintermute’s potential activities related to XPL.
Separately, the decentralized exchange Aster is considering the implementation of token lock-up periods for recipients of its upcoming token distribution. Discover what CEO Leonard had to say. Read the complete article.