XPL Token Price Jumps 15% as Founder Addresses Controversy

Plasma’s native token, XPL, experienced a nearly 15% price surge following statements from its founder addressing persistent negative claims.

While skepticism within the community remains, activity on the platform shows resilience, with thousands of new users continuing to join the network each day.

XPL Price Rebounds After Founder Denies Token Sale Allegations 

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Plasma is an Ethereum Virtual Machine (EVM)-compatible Layer-1 blockchain for stablecoin payments. Its native token, XPL, powers transaction fees and network security. 

The token made its market debut on September 25 with strong momentum, securing listings on major exchanges. In addition, Binance integrated Plasma into its HODLer Airdrops program, distributing 75 million XPL tokens—accounting for 0.75% of the total supply—to eligible BNB holders.

However, the early enthusiasm quickly faded. BeInCrypto reported that XPL plunged 46% after launch, as analysts flagged multiple red signals. 

Chief among them was Plasma’s reported connection to the same team behind Blast. This project has been mired in controversy since its late-2023 launch. Furthermore, many users also alleged that the team sold tokens.

Amid this, Plasma founder Paul Faecks responded to these claims in a recent statement on X (formerly Twitter). He clarified that no team members have sold XPL and that all investor and team tokens are locked for three years with a one-year cliff. 

Faecks also noted that only three of the project’s approximately 50 team members had prior experience at Blur or Blast, with others hailing from established firms like Google, Facebook, Square, Temasek, Goldman Sachs, and Nuvei. Additionally, the executive denied any engagement with market maker Wintermute, stating the team had no contracts or special information on its XPL holdings. 

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Following the statement, the price rebounded in the hours following. The altcoin rose from $0.88 to $1.01, representing a rise of approximately 15%. XPL shed most of these gains at press time. It was trading at $0.93, up 5.6% since the announcement.

Although the founder’s clarification reassured part of the community, doubts continued to circulate. Some observers pointed to the lack of transparency around ecosystem and growth allocations. An analyst suggested that tokens from these pools may have been sold despite the assurances about locked team and investor holdings.

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Meanwhile, many community members also argued that only a small group was actively involved in Blast. Thus, claiming that ‘just three’ team members came from the project is less reassuring than it appeared.

Why New Users Are Flocking to Plasma Despite Negative Sentiment

Despite the prevailing skepticism, adoption data suggested that user interest in Plasma remains strong. 

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Data from Dune Analytics showed that the network is attracting around 5,000 new users each day, a figure that represents more than 70% of its daily active users. This trend highlights steady organic growth at a time when investor sentiment has been shaken by controversy.

Moreover, some analysts remain optimistic about Plasma’s long-term potential. Treeverse’s CEO described it as the ‘closest exposure to Tether.’ The executive previously forecasted that Plasma could replicate Tron’s success.

With sentiment still divided, the coming weeks will be pivotal in determining whether XPL can capitalize on Plasma’s growing adoption to recover from its slump, or if further downside awaits.