What to know:
$XPL has lost more than 80% of its value since September, dropping 13.6% in the past day alone and risking exclusion from the top 100 cryptocurrencies.
Despite claims of 1,000 TPS, the Plasma chain is processing just 14.9 TPS, with limited use beyond a $676 million lending vault and no major utility expected until staking launches in 2026
When #Plasma 's XPL token was issued a month ago crypto investors were chomping at the bit to buy a slice of the new blockchain that was built for stablecoins.
But despite stablecoins being a dominant theme throughout this bull cycle, Plasma failed to live up to the hype; with XPL now having lost more than 80% of its value since September's short-lived high of $1.67
What went wrong?
Investors will be wondering where it all went wrong. Plasma was one of the most hyped projects of the year, backed by the likes of Bitfinex, Framework Ventures and Jordan Fish (Cobie) across two funding rounds that saw it raise $24 million, according to Icodrops.
Then there was the public sale, where it raised $50 million after selling 1 billion tokens for $0.05 each. These buyers remain well in profit but the same can't be said for those who purchased XPL on exchanges when it went live in September.
Sentiment plummeted straight after debut with allegations that the @Plasma Plasma team were engaging with market makers to short the XPL token, effectively locking in profits.
