The price of Aevo (AEVO), a decentralized derivatives exchange focused on options, perpetuals, and pre-launch trading, has plummeted by 25% today. This sharp decline has raised concerns among investors and raised questions about the project’s tokenomics and governance.

Aevo operates on the Aevo L2, a custom Ethereum rollup built using the Optimism stack, enabling it to support over 5,000 transactions per second and process over $30 billion in trading volume. However, the recent price plunge can be attributed to a significant token unlock event.

According to reports, the Aevo team and investors unlocked 82% of the total supply, amounting to millions of dollars worth of AEVO tokens. This move has been criticized by some in the community, including prominent crypto influencer Marius.capital, who alleged that the Aevo team now holds $215 million in AEVO tokens, ready to sell at any time, while investors received $172 million worth of tokens.

Marius.capital expressed concern over the involvement of major exchanges like Binance in supporting this move, accusing the developers, venture capitalists, and exchanges of prioritizing personal gain over the project’s technological advancements and the interests of retail investors.

Milei Moneda is a new meme coin inspired by the political and economic views of Javier Milei, an Argentine president known for his libertarian and pro-Bitcoin stance. You have an opportunity with the ongoing low presale price to get in early!

Sponsored

Do Checkout: Floki Breaks Out of Bullish Pennant; The Meme Coin Price Prediction Signals Potential 180-200% Rally

The sudden influx of a large number of tokens into the market has likely contributed to the price plunge, as investors rushed to sell their holdings, fearing further devaluation. This event has raised questions about the project’s tokenomics and governance, as well as the transparency and communication surrounding such significant token unlocks.

While some investors, like svooch, have chosen to “buy the dip” and add to their existing positions, others, like bullish, have advised caution, suggesting that it may be prudent to wait for the formation of a stable support level before considering an entry into the market.

The Aevo team and project leaders have yet to provide an official statement addressing the concerns raised by the community. As the situation unfolds, investors are closely monitoring the project’s actions and communication, seeking clarity on the rationale behind the token unlock and measures to restore confidence in the project’s long-term sustainability.

Hunting for a small cap coin that could explode 10x? We’ve unveiled a few last week alone.
Get all our future calls by joining our FREE Telegram community.

The post Why Is Aevo Crypto Price Plunging? Reason to Avoid Buying the Dip for Now appeared first on CaptainAltcoin.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

180 +