{"id":89504,"date":"2025-10-02T13:12:30","date_gmt":"2025-10-02T10:12:30","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=89504"},"modified":"2025-10-02T13:17:52","modified_gmt":"2025-10-02T10:17:52","slug":"insider-trading-claims-hit-plasma-as-xpl-slumps","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/insider-trading-claims-hit-plasma-as-xpl-slumps\/","title":{"rendered":"Insider-trading claims hit Plasma as XPL slumps"},"content":{"rendered":"<p>The creator of the <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">stablecoin<\/a> project Plasma, Paul Fax, denied insider-trading allegations after XPL dropped by more than 40%. Some community members remain unconvinced by his wording.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">We\u2019ve seen a number of rumors circulating since the launch of XPL and want to set the record straight.<\/p>\n<p>1\/ No team members have sold any XPL. All investor and team XPL is locked for 3 years with a 1 year cliff.<\/p>\n<p>2\/ Of our team of ~50, three spent time at Blur or Blast. Our team\u2026<\/p>\n<p>\u2014 Paul (@pauliepunt) <a href=\"https:\/\/twitter.com\/pauliepunt\/status\/1973495918709391529?ref_src=twsrc%5Etfw\">October 1, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;No team members have sold XPL. All their holdings and investors\u2019 coins are locked for three years with a one-year <span data-descr=\"a process of gradual unlocking and distribution of tokens according to a predefined schedule\" class=\"old_tooltip\">vesting<\/span>,&#8221; he wrote.\u00a0<\/p>\n<\/blockquote>\n<p>Plasma <a href=\"https:\/\/forklog.com\/en\/news\/plasma-launches-mainnet-and-xpl-token\">launched<\/a> a beta mainnet and its native token on September 25. XPL debuted at $1.30 and, three days later, reached an all-time high of $1.68. Since then its price has fallen by 41.8%, according to <a href=\"https:\/\/www.coingecko.com\/en\/coins\/plasma\">CoinGecko<\/a>.\u00a0<\/p>\n<p>At the time of writing, the token trades at $0.90.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"599\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-1a6b3fe827bd123a-5792307019612763-1024x599.png\" alt=\"image\" class=\"wp-image-266799\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-1a6b3fe827bd123a-5792307019612763-1024x599.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-1a6b3fe827bd123a-5792307019612763-300x175.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-1a6b3fe827bd123a-5792307019612763-768x449.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-1a6b3fe827bd123a-5792307019612763-1536x898.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-1a6b3fe827bd123a-5792307019612763.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Hourly XPL\/USDT chart on Binance. Source: <a href=\"https:\/\/ru.tradingview.com\/chart\/?symbol=BINANCE%3AXPLUSDT\">TradingView<\/a>.\u00a0<\/figcaption><\/figure>\n<p>The community suspected Plasma representatives of using algorithmic sales via the <span data-descr=\"Time-Weighted Average Price, or time-weighted average price\" class=\"old_tooltip\">TWAP<\/span> method, in which large orders are split into smaller ones. A user under the pseudonym ManaMoon pointed to transfers of more than 600m XPL from a team wallet to exchanges before the launch.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">OK so I actually dug into what happened with <a href=\"https:\/\/twitter.com\/search?q=%24XPL&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$XPL<\/a>, the vaults, and the Wintermute accusations.<\/p>\n<p>First, I wanted to see where the Plasma Team Vault was sending their tokens so I looked at each notable transfer from their vault.<\/p>\n<p>Vault address:\u2026 <a href=\"https:\/\/t.co\/xZgm9D2u0U\">https:\/\/t.co\/xZgm9D2u0U<\/a> <a href=\"https:\/\/t.co\/lKbWmuh2AA\">pic.twitter.com\/lKbWmuh2AA<\/a><\/p>\n<p>\u2014 ManaMoon (@ManaMoonNFT) <a href=\"https:\/\/twitter.com\/ManaMoonNFT\/status\/1973087081728503919?ref_src=twsrc%5Etfw\">September 30, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Personally, I think someone was running TWAP sales of an excessive quantity of tokens that retail buyers could not absorb,&#8221; he wrote.<\/p>\n<\/blockquote>\n<p>A community member going by crypto \u2014 popseye also blamed the <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-market-maker\">market maker<\/a> Wintermute for the XPL plunge.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Momentum completely ruined by the team dumping 800m tokens <\/p>\n<p>With wintermute as the MM<a href=\"https:\/\/twitter.com\/Plasma?ref_src=twsrc%5Etfw\">@Plasma<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24xpl&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$xpl<\/a> pretty much destroyed their chart and momentum and I hope their project fails (it probably will given how dumb they are) <a href=\"https:\/\/twitter.com\/search?q=%24aster&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$aster<\/a> made me hold this a bit longer than I wanted to\u2026 <a href=\"https:\/\/t.co\/ZjQVXaadkQ\">https:\/\/t.co\/ZjQVXaadkQ<\/a><\/p>\n<p>\u2014 crypto \u2014 popseye (papovic) \ud83d\udef8 \ud83c\udfe0 \ud83c\udf44 (@crypto_popseye) <a href=\"https:\/\/twitter.com\/crypto_popseye\/status\/1972937418786652584?ref_src=twsrc%5Etfw\">September 30, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Plasma destroyed their chart and momentum, so I hope their project fails,&#8221; he said.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>Fax denied any connection between the project and the platform, noting that he has the same information as other users.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;We did not hire Wintermute as a market maker and have never contracted them for any services,&#8221; he stressed.\u00a0<\/em><\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Not everyone is convinced\u00a0<\/h2>\n<p>The community reacted sceptically to the Plasma founder\u2019s statements. crypto \u2014 popseye noted that Fax ruled out team sales while leaving the status of other token categories unclear, such as those allocated to &#8220;the ecosystem and its growth&#8221;.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;It\u2019s obvious they were sold, yet you phrased the tweet as if that didn\u2019t happen. Stop lying, Polly\u2014you can\u2019t fool onchain,&#8221; \u2014 <a href=\"https:\/\/x.com\/crypto_popseye\/status\/1973510905926393876\">wrote<\/a> he.\u00a0<\/p>\n<\/blockquote>\n<p>A user under the pseudonym Melardev <a href=\"https:\/\/x.com\/uhonyn\/status\/1973643322901311844\">agreed<\/a>. He pointed out that more tokens are on exchanges than were sold in the presale:\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Of course the team sold nothing\u2014their tokens are locked\u2014but the ecosystem coins were definitely dumped on the market. In the name of transparency, disclose how you used 800m XPL.&#8221;\u00a0<\/p>\n<\/blockquote>\n<p>In his post Fax stressed that the Plasma team is &#8220;focused on building the monetary system of the future&#8221; and will not provide further comment.\u00a0<\/p>\n<p>In September, the stablecoin project <a href=\"https:\/\/forklog.com\/en\/news\/plasma-to-launch-neobank-offering-over-10-annual-returns\">announced<\/a> the launch of the neobank Plasma One with yields above 10% per annum.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Plasma stablecoin founder Paul Fax denied insider-trading allegations after XPL fell by more than 40%.<\/p>\n","protected":false},"author":1,"featured_media":89505,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"The founder denied the claims, but the community remains unconvinced","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[2167,807,1149],"class_list":["post-89504","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-plasma","tag-stablecoins","tag-wintermute"],"aioseo_notices":[],"amp_enabled":true,"views":"224","promo_type":"1","layout_type":"1","short_excerpt":"The founder denied the claims, but the community remains unconvinced","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89504","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=89504"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89504\/revisions"}],"predecessor-version":[{"id":89506,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/89504\/revisions\/89506"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/89505"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=89504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=89504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=89504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}