STBL lost 80% of its peak value and the token suffered a significant decline. Additionally, the token is currently mired in controversy as the founding team faces accusations that they sold millions of dollars worth of tokens.
Meanwhile, the project has minted USST 100 million and plans to launch a buyback program by the end of October. This development has divided markets between hopes for a recovery and fears of a collapse in confidence.
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Who sold and why did the market react so sharply?
STBL, the token of the stablecoin protocol of the same name, plummeted in value by more than 80% within just a month of its launch. According to BeInCrypto data, STBL reached an all-time high of around $0.60, then fell to a low of around $0.0797 before recovering slightly to $0.11478. At this price, STBL’s market cap remains close to $58 million.
According to Bubblemaps, on-chain data revealed that at least five large addresses sold all of their STBL holdings, netting approximately $17 million in profits. Notably, these same five addresses were linked to early STBL trading activity in September, when they collectively earned more than $10 million during the token’s launch phase.
This pattern has sparked speculation within the crypto community about the possibility of insider trading or coordinated sales. Some X users describe these accounts as “snipers,” implying algorithmic or insider-driven operations rather than regular market participants.
“I don’t like these snipers. They may or may not be insiders, but they dragged my $STBL portfolio deep underwater. Anyway, luckily the bastards came out and I still have enough stablecoins on the outside to buy more at the current rock bottom,” one trader wrote.
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Some observers labeled the sellers as casual traders, but STBL CEO Avtar Sela countered by arguing that these were “organized professional accounts”, citing Bubble Map’s findings.
The STBL team has publicly denied any internal involvement in the sale. In a statement, they emphasized that financial operations remain transparent and that team assignments and vesting schedules have not changed.
“We are focused on building the protocol and community adoption. The allocation/vesting has not changed. Additionally, the tokens that vest this quarter will not be minted and will not go into circulation.” STBL shares.
Despite the turmoil, STBL announced its intention to issue USST 100 million in the fourth quarter. The move raised concerns that increased token supply could add further selling pressure, especially as investor confidence is shaken. As previously reported by BeInCrypto, the STBL team also said that it will launch a USST buyback and staking program at the end of October, with the aim of restoring liquidity and stabilizing the token value.
Technical Analysis: Accumulation Zone or Dead Cat Bounce?
According to crypto analyst Michael van de Poppe, the current price trend could represent an important accumulation phase as STBL has formed a technical bottom around $0.09-$0.10. He suggests that if sentiment improves, the token could rebound towards the $0.17-$0.20 resistance range. Previous support levels have now turned into resistance.
However, Michael van de Poppe also warned that a sustained upward trend could only occur if market volumes recover and new capital returns to projects. Until then, STBL’s fate remains uncertain, oscillating between a story of cautious recovery and the shadow of a credibility crisis.
