Reduce Holdings and Harm Users: OKX Founder Cites Example of AEVO Tanking 90%

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As a seasoned crypto investor with battle-scarred experiences from the volatile crypto market, I can’t help but nod in agreement with Star Xu’s sentiments. The cryptocurrency world is riddled with insider schemes and questionable projects that seem to thrive on the unsuspecting investor’s greed for quick returns.

It’s well-known that the crypto market is infamous for manipulative strategies like pump and dump, and many people have questioned whether insiders might be influencing the price fluctuations of digital currencies. Recently, the head of a prominent crypto exchange, OKX, named Star Xu, used a social media platform to highlight such practices.

In a recent post by Star Xu, it was pointed out that numerous projects aim to get their tokens listed on prominent exchanges like OKX and Binance. After these tokens become available for trading, the insiders tend to sell off their holdings, while simultaneously attracting users. The developers of these tokens typically possess a large quantity of the token, which they may then unload onto investors. This can result in investors holding the bag when prices drop significantly.

According to Star Xu, after certain questionable projects get listed on exchanges, their main activities consist of distributing tokens, decreasing their own holdings, and attracting users. Exchanges must avoid being complicit with these kinds of projects, and it seems that OKX is struggling in this regard. With no oversight over the listing process or reduction of token holdings at present, the question arises: how can we safeguard this market? This is an issue that the entire crypto industry should ponder upon.

In a recent X article, the founder of OKX provided an illustration using Aevo (AEVO), currently ranked 145th on CoinMarketCap with a market capitalization of $375 million according to current data. At the time of writing, this cryptocurrency was trading at approximately $0.4336, marking a nearly 4% decrease over the last day, more than 9.7% in the past week, and almost 85% since its launch in March 2024.

On March 13th, the cryptocurrency peaked at $4.46, but since then it has plummeted by 90%, dropping below the $1 mark. Owners of this token have suffered substantial losses that may be due to insiders selling off their shares. Some users have criticized Aevo as questionable, and one individual shared his story about losing a significant amount in AEVO. He continued holding on until the price plummeted to $0.8 before finally giving up.

A user of cryptocurrency advised the crypto sphere to steer clear of investing in such ventures, implying they should allow these fresh coins to decline to zero. This investor opined that the market should concentrate on established projects rather than questionable ones.

What Is AEVO?

AEVO is known for being a high-speed, decentralized platform specializing in derivatives trading, particularly options, perpetuals, and pre-launch deals. According to information available on CoinMarketCap, it’s capable of processing over 5,000 transactions per second and can manage trades worth more than $30 billion in volume.

According to their official site, the project boasts over $10 billion in cumulative value traded and approximately $50 million in ongoing contracts. Aevo emerged in 2020, with a team that includes professionals from notable companies like Coinbase, Kraken, and Goldman Sachs, as well as esteemed institutions such as Stanford, MIT, and Cornell.

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2024-08-02 16:07