Plasma CEO Denies Insider Selling, Blast Links After XPL Token Drop
Plasma's native token XPL experienced a significant drop shortly after its launch, sparking speculation about insider selling and links to the controversial Blast project. Plasma founder Paul Faecks has since addressed these concerns.
The XPL token plummeted around 46%, from its peak of $1.70 to approximately $0.92, just days after its launch. This decline fuelled rumours of insider selling and connections to Blast, which faced criticism earlier. Blockchain data revealed that addresses linked to market maker Wintermute transferred substantial amounts of XPL to exchanges during the launch period.
In response, Paul Faecks, Plasma's founder and CEO, clarified the situation on October 2, 2025. He confirmed that no team members had sold any XPL, with all investor and team tokens locked for three years, including a one-year cliff. Faecks also stated that only three of Plasma's 50-member team had previously worked at Blast, dismissing suggestions of close ties. Notably, Faecks confirmed that Plasma had not engaged directly with Wintermute in any capacity, refuting rumours of a special agreement or market-making role.
Despite the initial drop and speculation, Plasma's founder Paul Faecks has addressed concerns about insider selling and links to Blast. He has clarified the token's lock-up period, the team's Blast connections, and Plasma's relationship with Wintermute. As the situation unfolds, investors await further developments and potential recovery in the XPL token's value.
