Key Takeaways
What triggered XPL’s price crash?
The bulk of selling pressure came from unlocked supply sent to exchanges, with Wintermute’s activity aligning with the $1.68 top.
What’s next for the altcoin?
The cheap XPL attracted key players, but speculative interest was yet to reverse.
Plasma [XPL] price crashed by nearly half following an intense sell-off post-TGE (token generation event).
As of writing, the market cap dropped from $3 billion to $1.6 billion, wiping out most of the bulls who were chasing the “stablecoin supercycle” trade.
Contextually speaking, Plasma is a dedicated L-1 blockchain network for stablecoin and payments backed by Bitfinex, Tether, Bybit, and Peter Thiel’s Founders Fund.
Given its backers and the stablecoin hype, XPL became an instant hit when it was available for public trading on the 25th of September.
Presale investors saw returns of 19X, followed by a staggering 1,500% surge in the altcoin’s price, from $0.10 to $1.68, after its exchange launch.
However, just four days later, the price sharply declined, erasing much of the initial gains.
‘Team-driven dump’ accusations emerge
But four days after the launch, the price tanked 46%. It slipped from the $1.68 peak to below $1. at the time of writing.
Amid the crash, the community accused the team and the market makers, especially Wintermute, of driving the dump.
An evaluation of the claims by an analyst established that about
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Author: Benjamin Njiri
