Plasma’s native token XPL is now trading around $0.94, down over 50% from its $1.68 peak just days ago. While broader crypto markets surged – with Bitcoin gaining nearly 7% in the last two days – XPL has struggled to recover, losing 0.4% today after a volatile session that saw it dip to $0.91 and a brief rebound to $1.02.
Since launch, XPL has gone from one of the most talked-about tokens in the market to one facing intense scrutiny. Despite early strength and major listings, the price has steadily declined, erasing nearly all gains from its first full week of trading.
Read also: Plasma’s XPL Crashes Over 35% After Hitting All-Time High
Founder Denies Insider Selling, Market Maker Ties
Amid mounting speculation over insider activity, Plasma founder Paul Faecks issued a public statement aimed at addressing several circulating rumors. He stated that neither team members nor investors have sold any XPL, emphasizing that all such tokens are locked for three years with a one-year cliff.
He also responded to claims that Plasma’s team is made up of former developers from the troubled Blur and Blast projects, noting that only a small portion of the team had worked there, while the broader group includes professionals from major firms like Google, Facebook, and Goldman Sachs. Faecks further denied any partnership or contractual relationship with the trading firm Wintermute, which some had linked to token flows.
Despite the founder’s clarifications, on-chain data shows that over 600 million XPL tokens were transferred from the Plasma vault to exchanges shortly after launch. These flows have raised questions about ecosystem fund allocations, even if team and investor tokens remain locked.
Coinbase Futures Listing Brings Visibility
In a positive development, XPL was recently added to Coinbase Perpetual Futures, joining a short list of altcoins featured on the platform. The listing, which launched alongside the start of “Uptober”, adds new visibility and potential trading demand.
Still, volume alone hasn’t been enough to stabilize the price. Liquidations continue, including for large positions such as Huang Licheng’s $28M XPL long, which is now under heavy pressure and facing losses of over $8 million, with a liquidation level near $0.44.
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Where Things Stand
While the project’s fundamentals remain intact and user growth continues – with around 5,000 new users joining Plasma daily – market sentiment around XPL has clearly shifted. The coming days will likely hinge on whether confidence in the team’s transparency can be restored, and whether selling pressure finally slows down.
