Plasma founder denies insider selling after XPL token plunges over 50%

Plasma founder Paul Faecks has denied allegations of insider selling following a dramatic drop in the XPL token's value, which fell over 50% in recent days. The token, which had spiked to nearly $1.70 on Sunday, tumbled to $0.83 by Wednesday. Faecks assured the community that no team tokens were sold and highlighted that both investor and team allocations remain locked for three years with a one-year cliff. Speculation arose over possible algorithmic selling strategies, such as time-weighted average price (TWAP), as community members conducted onchain investigations, linking movements of over 600 million XPL tokens to the project’s vault. Despite accusations involving an algorithmic trading firm, Wintermute, Faecks emphasized that Plasma has not engaged them as a market maker and shares the same public information regarding XPL’s ownership. Nevertheless, some community members expressed skepticism about Faecks’ statements, suggesting that certain token categories may have been sold and questioning the transparency of the team’s communications. Faecks reiterated that the Plasma team remains focused on developing their project and will not provide further comments on these issues.

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