$XPL Founder Rejects #InsiderSelling Claims After 50% Drop


#Plasma founder Paul Faecks has denied insider selling accusations after the project's native $XPL token lost more than half its value over the weekend. Faecks rejected speculation on Thursday that the team dumped tokens, emphasizing that investor and team allocations remain locked for three years with a one-year cliff.


"No team members have sold any $XPL," Faecks stated. Plasma launched its mainnet beta alongside the native token on Sept. 25. The #layer-1 blockchain targets faster and cheaper #stablecoin payments through its network infrastructure.


$XPL spiked to nearly $1.70 on Sunday following the launch before tumbling to $0.83 by Wednesday. The decline erased more than 50% of the token's value within days of trading. Community members suspected the team engaged in time-weighted average price (TWAP) selling, an algorithmic strategy that breaks large orders into smaller chunks executed at regular intervals.


Independent blockchain sleuth ManaMoon identified movements from the Plasma team vault that raised questions. The analyst reported the wallet sent over 600 million $XPL tokens to exchanges in the days leading up to the mainnet launch. ManaMoon suggested someone executed TWAP selling in volumes that overwhelmed retail buying demand.

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October 02, 2025 at 7:39 PM
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