The cryptocurrency industry is going through a critical phase as the prevailing bear trend continues to put pressure on various projects. Meanwhile, the team behind an altcoin project sold their coins, which became a hot topic in the cryptocurrency market. Here are the details…
Altcoin team sells its own coin
As the leading cryptocurrency Bitcoin (BTC) maintains its dominance, low market cap altcoin projects are getting harder to develop. In this challenging market environment, project teams play a crucial role in determining the trajectory of their products. However, recent events have brought to light an alarming practice among some project owners. While the market is struggling, some teams choose to sell their products, negatively affecting their investors.
One such project, Lybra Finance (LBR), came under scrutiny after allegations emerged that its team was selling. On-chain data provider Spot On-Chain has revealed that addresses associated with the Lybra Finance team have transferred significant amounts of LBR tokens to the OKX exchange. The timing of these transfers drew attention. Because the Lybra team had invested $1.81 million in LBR just before the OKX listing. In addition, it is stated that the addresses associated with the team transferred 50 thousand LBR of 118 thousand dollars to the MEXC exchange the day before. Meanwhile, about 5 hours after it was listed on OKX, the LBR price dropped 20 percent.
Worries are intensifying
This behavior of the Lybra Finance team has intensified concerns within the cryptocurrency community. Continued sales by the project team have the potential to exacerbate the downward trend in LBR prices and further erode investor confidence. The situation is intertwined with the broader landscape of cryptocurrency exchanges. Known for its significant trading volume, OKX is gaining market share as the dominance of other exchanges such as Binance declines. OKX has listed Lybra Finance (LBR) for trading. However, what happened next was far from positive.
OKX listed LBR
The start of LBR trading on OKX marked a significant drop in the altcoin’s value, with a 20 percent drop. The suddenness of this decline caught many investors off guard. As time passed, more information emerged that shed light on the post-listing actions of the Lybra Finance team. The team’s claims that it was selling raised questions about the integrity of the project and its commitment to its own product. Referring to the listing in an official announcement, OKX stated:
OKX is pleased to announce that Lybra Finance (LBR) is listed on our spot trading markets. Please note the following schedule:
- LBR deposits were opened on 16 August 2023 at 04:00 CEST.
- LBR/USDT spot trading will start on 16 August 2023 at 10:00 CEST.
- LBR withdrawals will start on 17 August 2023 at 13:00 CEST.
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