Plasma Founder Claims No Team Member Sold Any XPL

Plasma’s token plunge sparked rumors of insider selling and ties to Blast, but founder Paul Faecks insisted team and investor tokens remain locked.

Plasma founder Paul Faecks addressed the controversial launch of the project’s native token XPL on X. 

The XPL token dropped around 46% from its all-time high of $1.70 to roughly $0.92 just days after launching. The decline was fueled by speculation that insiders had sold large volumes after the token launched, and rumours that linked Plasma to the controversial Blast project.

“No team members have sold any XPL. All investor and team XPL is locked for 3 years with a 1 year cliff,” said Faecks.

This story is an excerpt from the Unchained Daily newsletter.

He also claimed that only three of Plasma’s 50-member team had spent time at Blast and that the team had not directly engaged with market maker Wintermute in any way.

Blockchain data shows that addresses tied to Wintermute transferred significant amounts of XPL to exchanges during the launch period, which contributed to market liquidity and volatility after Plasma’s