<\/p>\n
After a highly successful launch, the XPL token has fallen almost 50% from its opening week high.<\/p>\n
Stablecoin-focused Layer 1 blockchain Plasma debuted its XPL token two weeks ago, and following an impressive post-TGE surge to a $17 billion fully diluted valuation (FDV), the token has since been bleeding.<\/p>\n
XPL launched<\/a> on Sept. 25 and doubled from its opening price of roughly $0.8 to a high of $1.67 in the following days, rewarding ICO participants<\/a> with a 3300% return on their investments.<\/p>\n However, since that peak, the token has struggled and currently trades at $0.87, or an $8.7 billion valuation, a 47% drop from its all-time high. The token has greatly underperformed the broader market, with BTC rising almost 12% between Sept. 27 and Oct. 4 while XPL plunged 49%.<\/p>\n It is unclear whether there is a specific catalyst for the token\u2019s muted performance after such an explosive start, and Plasma\u2019s representatives referred The Defiant back to founder Paul Faecks’ X post<\/a>, where he denied allegations that the Plasma team sold tokens or that controversial market-making firm Wintermute was involved.<\/p>\n While Faecks has ruled out any potential foul play, some contributing factors to the selloff could include liquidity incentive emissions<\/a>, which payout more than $1 million per day in XPL, or ICO whales selling large quantities<\/a> of tokens, as the sale structure controversially<\/a> allowed individuals to purchase up to 10% of the initial $500 million cap. <\/p>\n As a result, the first Plasma ICO vault filled instantly, and the team increased the deposit cap from $500 million to $1 billion while still allowing individual investors to purchase massive quantities of the token, which were completely unlocked on Sept. 25.<\/p>\nKey Metrics Remain Strong<\/h2>\n