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Plasma Labs has issued a statement to quell market speculation surrounding its native XPL token, which has experienced significant selling pressure. The company confirmed that all team and investor XPL allocations are locked for three years with a one-year cliff, asserting that no internal sales have occurred. Furthermore, Plasma Labs explicitly denied any contractual relationship with the prominent market maker, Wintermute, amidst circulating rumors.
Key Takeaways
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Plasma Labs confirms all XPL tokens for team and investors are locked for three years with a one-year cliff.
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The company denies any team members have sold XPL.
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Plasma Labs states it has never contracted with market maker Wintermute.
Market Volatility and Team Background
The clarification comes after rumors questioned the token distribution and linked Plasma's core team to previous ventures. A Plasma co-founder, Paul, emphasized that "No team members have sold any XPL. All investor and team XPL is locked for 3 years with a 1-year cliff." He also clarified that while some employees have prior experience at platforms like Blur and Blast, the team also comprises individuals from diverse backgrounds including Google, Facebook, Goldman Sachs, and Temasek.
Technical Analysis and Market Sentiment
XPL has seen considerable price swings, dropping over 40% from its recent high. Analyst Luke Martin highlighted the $0.85 level as a critical support zone, noting a strong buyer response at this price point. The chart patterns indicate a potential bounce, especially with the team's assurances regarding token locks and the denial of Wintermute involvement. Resistance is observed around $1.01, a level that needs to be reclaimed to shift the current momentum towards an upward trend.
Machi Big Brother's Significant Loss
In a separate development, prominent trader Jeffrey “Machi Big Brother” Huang has incurred substantial unrealized losses on his XPL position on Hyperliquid. A leveraged long position that previously showed significant profits has now shifted to an unrealized loss of approximately $10.9 million, with liquidation risk at $0.4555. Huang also maintains a leveraged Ether long position with unrealized profits.
XPL is currently at a crucial juncture, with the $0.85 support level being closely watched. Plasma's transparency regarding token locks aims to restore confidence, though the token's volatility remains a significant factor for traders and investors.
source
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Plasma Confirms XPL Lock, Denies Wintermute Link, The Crypto Times.
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