Star Xu, the founder of major crypto exchange OKX, has raised concerns over the frequent sell-offs of newly listed altcoins. He specifically highlighted the Aevo token, which saw its value plummet from nearly $4 in March 2024 to approximately $0.434, marking a staggering 90% decline in just five months.
Xu’s critique extends beyond mere market fluctuations, addressing the ethical responsibilities of crypto exchanges. In a post on X (formerly Twitter), he questioned the motivations behind the listing of new tokens, suggesting that these actions often lead to rapid sell-offs that primarily benefit early holders while harming the broader user base.
Xu also expressed concerns about the lack of oversight on token listings and reduction in holdings, urging the industry to reflect on how to protect the market.
In response to these issues, Aevo has announced a buyback program aimed at stabilizing its token’s price. The company revealed that it purchased 1 million AEVO tokens at an average price of $0.446 in July and plans to continue buybacks of at least 1 million AEVO each month through December.
This is part of a broader trend where project developers are increasingly using tokens as a means to raise and cash out USD rather than investing deeply in their own projects. Notably, prominent crypto investor RamenPanda criticized this shift, indicating that many developers no longer believe in their own tokens.
Other tokens face similar challenges. Data from VC Printer on Dune shows that venture capitalists holding Ethena (ENA) have significant unrealized gains, posing a potential market risk if these profits are realized. Additionally, upcoming token-unlocking events, such as Wormhole’s release of 600 million W tokens and AltLayer’s unlocking of over $100 million worth of ALT tokens, could further pressure the market if stakeholders decide to sell their holdings.
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