The high token density in some private wallets has always been a concern in various altcoin projects. There are allegations that the Evmos co-founder, who left the project due to some disagreements, is selling the tokens. This caused panic among the community members.
The co-founder has sold 144,000 Evmos tokens so far!
Evmos is an Ethereum Virtual Machine (EVM) project based on the Cosmos ecosystem. According to Web3 data analysis, co-founder Jessica has sold more than 144,000 tokens since April 30. However, out of 9.4 million Evmos sold on decentralized exchange (DEX) Osmosis, the co-founder’s sale only accounts for 1.5% of the total tokens sold during the timeframe. According to experts, the rest of the selling pressure is likely due to the community panicking over the co-founder’s activities.
Source: TwitterIn a Twitter thread, the Evmos team confirmed that a departing co-founder had sold from a wallet containing more than 34 million tokens. At the time of writing, the co-founder’s assets were over $4.9 million.
Source: MintscanCommunity disappointed, altcoin price dropped!
By the way, the team of the altcoin project did not name the co-founder. However, from a GitHub link shared in the thread, it looks like they’re talking about Akash Khosla. In this regard, Evmos wrote:
We are actively working with this person to transfer the tokens back to the Evmos Foundation. This is just one of the concerns raised by the community that we want to actively address now and in the coming days with our transparency initiative plan next week.
Meanwhile, Khosla’s sales coincided with a sharp drop in Evmos’ token price. Evmos’s value fell more than 50% in May, from $0.30 at the beginning of the month to now $0.14. The Evmos team stated that Khosla left the project due to “operational incompatibility and disagreements over accountability.” Also, the Evmos team noted that Khosla’s wallet remains the largest delegate in the Evmos network. He said he has currently staked 11.5 million ($1.6 million) tokens.
However, one disappointed community member stated on Twitter:
Wow. Maybe you shouldn’t be giving 34 million tokens to a co-founder in the first place, huh? It would be a good way to avoid this. First, there was an erroneous launch. Some airdrop buyers were unable to claim, while others enjoyed a crazy APR. We are witnessing this now. The Cosmos L1s have a lot to learn about cryptoeconomics and human nature.
The EVMOS token is trading at $0.1407, down about 6.57% in the last 24 hours according to press time.
EVMOS daily price chart / Source: CoinMarketCap
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