Plasma founder Paul Faecks denied the insider’s sales charge after the project’s native token XPL dropped more than half its value over the weekend.
On Thursday, FAECKS rejected speculation that the team offloaded the tokens to the market, highlighting that investors and team allocations remain locked on a one-year cliff for three years. “No team members have sold XPL,” he said.
Plasma officially launched its mainnet beta along with the native Plasma (XPL) token on September 25th. Layer-1 Blockchain is designed to make Stablecoin Payments cheaper and faster.
According to TradingView data, XPL has since launched at nearly $1.70 on Sunday, reaching $1.70 on Sunday, and steadily reaching $0.83 by Wednesday.
Community Concerns and On-Chain Survey
Due to the dramatic decline, many community members suspected that their teams were engaged in selling time-weighted average price (TWAP). In this algorithmic strategy, large sell orders are split into smaller, equally sized orders, each run at normal time intervals.
Community members quickly turned to on-chain analysis to investigate the flow of XPL after dumping.
Independent detective Manamun pointed out the movement from the Plasma Team’s safe. Members of the community said they sent over 600 million XPL tokens in exchange in the days leading up to the release.
“Personally, I think someone was TWAP and was selling an excess of tokens that retail buyers couldn’t stand,” writes Manamoon.
Community members with handle Crypto_Popseye accused the team and algorithm trading company WinterMute of crashing prices. “Plasma $XPL almost destroyed the charts and momentum. I hope their project fails,” he writes.
Despite the community’s comments, the Plasma team denied its relationship with Winter Mute, saying it had the same information as the public.
“We are not involved in WinterMute as a market maker and have never signed up for WinterMute for any of their services,” says Faecks. “We have the same information as the public regarding ownership of WinterMute’s XPL.”
Related: ASTER refunds users after XPL’s permanent glitch sends price to $4
Community Probe Ecosystem and Growth Tokens
After the FAECKS post, Crypto_Popseye questioned and responded to the founder’s message. Community members ruled out team sales but accused them of using language that left status in other token categories, such as “ecosystem and growth” tokens.
“It’s pretty clear that they’re being sold, but you’re talking about your tweets so that they don’t seem to be sold,” the user said.
In his post, FAECKS argued that their team is “focused on lasers on building a money future” and would not comment further.
Cointelegraph reached out to the Plasma Team for comment, but was not responded by publishing.
magazine: Forget Terminator: Janet Adams of singularitynet builds AGI with a heart