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Plasma’s XPL Crashes, Paul Faecks Insists Team Did Not Sell Tokens

Key Takeaways

  • ​Plasma’s XPL token dropped over 50%, but Paul Faecks said no team tokens were sold and all allocations remain locked;
  • Community members flagged 600 million XPL transfers before launch, which raised suspicions of insider activity;
  • Faecks stated that Plasma has never worked with Wintermute and only knows of their involvement through public information.

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Plasma’s XPL Crashes, Paul Faecks Insists Team Did Not Sell Tokens

Paul Faecks, the head of Plasma, addressed recent concerns from the community after the company’s digital asset, XPL, lost over 50% of its value.

He stated that no one on the core team has sold any of their tokens. According to Faecks, both team and investor holdings are under lock for three years, with the earliest access point after the first year.

Plasma introduced its blockchain network and the XPL token to the public on September 25. The project focuses on improving the speed and reducing the cost of stablecoin payments.

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However, after launch, the token's value dropped, which led some in the community to question whether the fall was caused by insider activity.

An X user named @ManaMoonNFT pointed out that a wallet linked to the Plasma team transferred over 600 million XPL tokens to exchanges before the public launch. They suggested that these transfers might indicate quiet selling activity that overwhelmed regular traders.

Another user, @crypto_popseye, accused the team and trading firm Wintermute of driving the price down. They criticized the project’s performance and expressed doubts about its future.

In response, Faecks clarified that Plasma has no partnership with Wintermute and has never worked with the firm in any capacity. He emphasized that the company has access only to publicly available information regarding Wintermute's possible involvement with XPL.

Meanwhile, the decentralized trading platform Aster recently debated whether to impose holding periods on recipients of its next token giveaway. What did CEO Leonard say? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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