XPL, the native token of Plasma, experienced a price surge of nearly 15%, following a statement from its founder addressing persistent negative claims.
Although skepticism within the community remains, activities on the platform have shown resilience, with thousands of new users continuing to join the network every day.
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XPL price rebound after founder rejects claims for sale of tokens
Plasma is the Ethereum Virtual Machine (EVM)-Compatible Layer-1 blockchain for Stablecoin Payments. Native tokens, XPL, Powers transaction fees, network security.
The token debuted in the market on September 25th and has secured a list of major exchanges due to its strong momentum. Additionally, Binance has integrated the plasma into the Hodler Airdrops program and distributed 75 million XPL tokens (consisting of 0.75% of the total supply) to eligible BNB holders.
However, the initial enthusiasm quickly faded. Beincrypto reported that XPL plunged 46% after launch as analysts flagged multiple red lights.
The chief among them was reportedly reported by Plasma with the same team behind Blast. The project has been in controversy since its launch in late 2023. Additionally, many users claimed that the team sold the tokens.
Among this, Plasma founder Paul Faecks responded to these claims in a recent statement about X (formerly Twitter). He revealed that team members are not selling XPL and that all investors and team tokens have been locked on a one-year cliff for three years.
FAECKS also said that only three of the project’s approximately 50 team members had previous experience with Blur or Blast, resulting in others from established companies such as Google, Facebook, Square, Temasek, Goldman Sachs and Nuvei. Additionally, the executive refused to be involved with market maker Wintermute, saying the team had no contracts or special information regarding XPL holdings.
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“We are focused on lasers on building a future for money and will not comment any more. We are extremely grateful for the support of our community. We are back to work now,” he writes.
Following the statement, prices rebounded in the next few hours. Altcoin rose from $0.88 to $1.01, representing an increase of about 15%. XPL has flowed most of these profits at the time of pressing. Since its announcement, it has been trading at $0.93, up 5.6%.
Clarification of the founder reassured some of the community, but doubts continued to spread. Some observers pointed to a lack of transparency regarding ecosystems and growth allocation. Analysts suggested that these pool tokens could have been sold despite guarantees regarding the holdings of locked teams and investors.
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“So they didn’t sell an 8% ecosystem fund, so can they just go ahead and withdraw it from CEXS, where they’re bringing it back to on-chain vault?
Meanwhile, many community members argued that only small groups actively involved in the explosion were actively involved. Therefore, claiming that “only three” team members came from the project is less comforting than it appeared.
Why new users are swarming up in the plasma despite negative emotions
Despite general skepticism, adoption data suggested that users’ interest in plasma remained strong.
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Dune Analytics data showed that the network attracts around 5,000 new users every day. This is a number that represents more than 70% of daily active users. This trend highlights stable organic growth at a time when investor sentiment is shaking by controversy.
Additionally, some analysts are optimistic about the long-term potential of plasma. Treeverse’s CEO described it as “the closest exposure to the tether.” The executive previously predicted that plasma could replicate Tron’s success.
With emotions still split, the coming weeks will be crucial in determining whether XPL can take advantage of the increased adoption of plasma to recover from a slump, or whether there is even more downside waiting.
