The dramatic 90% decline in Aevo token’s value has led to criticism from OKX founder Star Xu, who calls for greater market supervision and ethical responsibility in crypto projects.
Points
- Aevo token has declined by 90% from its peak, now trading at $0.434.
- OKX founder Star Xu criticizes the lack of supervision and ethical responsibility in crypto projects.
- Aevo team announces a buyback strategy to stabilize the token’s price.
- Other altcoins face similar market pressures due to venture capitalist profit-taking and token unlocking events.
The Aevo token has experienced a dramatic 90% decline in value, falling from nearly $4 in March 2024 to $0.434. This steep drop has sparked criticism from OKX founder Star Xu, who highlighted the need for greater market supervision and ethical responsibility in crypto projects.
Star Xu expressed concerns about the frequent sell-offs of newly listed altcoins, noting that project developers often use tokens as tools to raise and cash out USD without believing in their own cryptocurrencies. RamenPanda, a prominent crypto investor, echoed these sentiments, criticizing the trend of developers treating tokens merely as intermediate tools for cashing out.
In response to the price decline, the Aevo team has implemented a token buyback strategy to stabilize the token’s value. In July, they purchased 1 million AEVO tokens at an average price of $0.446. The team committed to monthly buybacks of at least 1 million AEVO tokens from July to December, aiming to create long-term value for token holders.
Aevo is not the only token facing market pressures. Data from Dune dashboard, VC Printer, shows that several altcoins are under similar stress. For instance, venture capitalists holding Ethena （ENA） are sitting on unrealized profits of 73X, posing a significant market impact risk if these profits are realized. Token-unlocking events also contribute to market pressures, with Wormhole releasing 600 million W tokens, constituting 33% of its circulating supply, expected to introduce substantial selling force.
解説
- The sharp decline in Aevo token’s value underscores the volatility and risks associated with investing in newly listed altcoins.
- OKX founder Star Xu’s criticism highlights the need for greater market oversight and ethical responsibility in crypto projects to protect investors and ensure market stability.
- The Aevo team’s buyback strategy aims to stabilize the token’s price and create long-term value for holders, demonstrating a proactive approach to managing market pressures.
- Other altcoins face similar challenges due to venture capitalist profit-taking and token unlocking events, which can significantly impact market dynamics.
- Investors should be aware of
the potential risks associated with altcoins and consider strategies to mitigate these risks, such as diversification and staying informed about project developments and market trends.
- Understanding the dynamics of token buybacks and their potential impact on price stability can help investors make more informed decisions.
- Monitoring key market events, such as token unlocks and large sell-offs by venture capitalists, can provide valuable insights into potential price movements and market sentiment.