Paul Faecsk publicly denied involvement in Plasma XPL’s significant price decline, asserting that neither personal holdings nor advising played a part, as stated on Twitter on September 30, 2025.
The incident signifies potential misinformation risks in volatile cryptocurrency markets, emphasized by quick community reactions and developers’ ongoing investigations into the underlying causes of XPL’s liquidity event.
Paul Faecsk has denied involvement in the Plasma (XPL) price drop. The situation unfolded when reports emerged of a sudden decline in XPL’s value.
Faecsk, mentioned as a potential contributor to the event, has firmly denied any involvement in the price decline. He emphasized the importance of fact-checking community information. “I categorically deny any involvement in the recent Plasma price movement. I have not sold any personal holdings or advised any movement of large token volumes. Let’s ensure community facts are verified before spreading misinformation.”
Liquidity Drops 35% During XPL Turmoil
The XPL token experienced a significant liquidity drop, with over 35% reduction in TVL within two days. No evidence linked Paul Faecsk to any major transactions. Plasma XPL Price and Liquidity Analysis
Larry Cermak, VP of Research at The Block, emphasized liquidity causes of the price drop. Plasma’s developer team plans to release a comprehensive analysis to reassure stakeholders.
Market Corrections Mirror SUSHI’s 2022 Crisis
Past liquidity events, like SUSHI in 2022, mirror XPL’s incident. Typically, such occurrences prompt rapid declines and rumors, followed by project statements to stabilize the market.
Samantha Lee, DeFi Analyst at Paradigm, highlighted the importance of transparency and open-source analysis in mitigating misinformation during volatile periods. “False attribution to single leaders during volatile events is counterproductive. Plasma devs are right to promise an open-source post-mortem.”
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