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AEVO reached an all-time high of $4.46 on March 13th and has since then tanked 90%, trading below the $1 price level.
The crypto market is notorious for pump and dump schemes, and investors have often speculated about the involvement of insider teams in the price action of cryptocurrencies. Notably, the founder of leading crypto exchange OKX, Star Xu, took to the social media platform X to emphasize the existence of such projects.
In the X post, Star Xu stated that many projects exist that have the ultimate goal of getting their tokens listed on major exchanges. However, once these tokens are listed on trading platforms like OKX, Binance, and others, the insiders “reduce holdings and harvest users”. The creators of these tokens have access to a significant supply, which often results in them dumping their holdings on investors, who are left in the dry to face the plummeting prices.
“After some token projects are listed on exchanges, the only thing they do is to release, reduce holdings, and harvest users. Exchanges should not become accomplices of such projects, and OKX is not doing well in listing. Since there is no supervision on listing and reducing holdings for the time being, how to protect this market? This is something that the entire industry should reflect on,” said Star Xu.
In the X post, the OKX founder gave the example of Aevo (AEVO), a digital asset ranked 145th on CoinMarketCap, having a market capitalization of $375 million, as per data. The altcoin is trading at a price of $0.4336 at the time of publication, down by almost 4% in the past 24 hours, 9.7% in the past week, and almost 85% since March 2024, when it was introduced.
The cryptocurrency reached an all-time high of $4.46 on March 13th and has since then tanked 90%, trading below the $1 price level. The holders of the token would have borne the heavy losses that are likely a result of insiders dumping their holdings. Some X users called Aevo shady. A user explained how he had lost a massive sum in AEVO, adding that he kept holding on until the prices nosedived to $0.8 price level.
Another X user urged the crypto community to avoid investing in such projects and “let these new coins go to zero.” The crypto investor said that the market needs to focus on mainstream projects and not dubious projects.
What Is AEVO?
AEVO has been touted as a decentralized derivatives exchange focused on options, perpetuals, and pre-launch trading. The project claims to support over 5,000 transactions per second and can handle over $30 billion in trading volume as per the details on CoinMarketCap.
As per the official website, the project claims to have more than $10 billion in total value traded and more than $50 million in current open interest. Aevo debuted in 2020 and claims to have a team with members from companies such as Coinbase, Kraken, and Goldman Sachs and institutions such as Stanford, MIT, and Cornell.
