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Plasma CEO Responds to Blur, Blast, and Wintermute Rumors as XPL Slides
Plasma’s XPL token has plunged over 45% from its all-time high, fueling speculation and community concerns. But according to co-founder and CEO Paul Faecks, the accusations of insider selling, market maker collusion, and team exits are entirely unfounded.
XPL’s Rise and Fall Sparks Accusations
Following its late September launch at around $1.00, XPL surged to $1.69 by September 28, then fell sharply to a range between $0.74 and $1.08. The volatility ignited social media backlash, with some users alleging that insiders had dumped tokens—citing Plasma team members’ past ties to Blast and Blur, and raising questions about potential involvement from market maker Wintermute.
Founder Responds: “All XPL Allocations Are Locked”
On October 1, Faecks publicly addressed the rumors on X (formerly Twitter), stating that no team members or early investors have sold any XPL, due to a strict three-year lockup with a one-year cliff. He emphasized that the only circulating supply comes from public sales and liquidity allocations.
In response to criticism of the team’s background, Faecks clarified that only three out of 50 employees had any connection to Blast or Blur, and the broader team includes veterans from Google, Facebook, Square, Goldman Sachs, and Temasek.
He also denied any partnership with Wintermute, saying Plasma “has never engaged or contracted Wintermute” for any services.
A Project Bigger Than the FUD
The clarification follows a high-profile token generation event on September 25, which generated over $3 billion in trading volume and led to listings on Binance, OKX, and Upbit. Plasma had previously raised $373 million in a public sale, far surpassing its $50 million goal.
With over $2 billion in stablecoins locked and more than 100 DeFi integrations, Plasma has positioned itself as a Layer 1 chain for stablecoin-focused infrastructure.
While XPL remains 40–45% below its peak, Faecks insists the team is focused on long-term infrastructure, not short-term speculation—a message that may be key to restoring investor confidence.
