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.
