DoubleZero Token Plummets 65% Due to Unexpected Supply Discrepancy
The launch of DoubleZero, a new high-performance network on the Solana blockchain, faced significant turmoil on Oct. 2 as its native token's price fell by over 65%. The decline is linked to a discrepancy in the token's circulating supply, which appeared nearly five times higher than official documents indicated.
- The DoubleZero token launched on major exchanges like Coinbase and Binance Alpha, reaching an all-time high of $1.68 before dropping to $0.4961.
- The project's whitepaper suggested an initial circulating supply of 700 million tokens, but CoinMarketCap reported 3.47 billion tokens at launch.
- This increase of approximately 2.77 billion unexpected tokens likely caused the market sell-off.
- The source of these additional tokens remains unknown, creating uncertainty and negative sentiment.
- DoubleZero raised $28 million in a private sale, but the release schedule for these funds is unclear.
- The project had secured listings on major exchanges and received a No-Action Letter from the US SEC, indicating strong legal planning.
- Launch day was marred by technical issues and confusion, with users reporting problems and questioning the selling pressure's origin.
- The team has not publicly addressed the supply issue or technical problems, fueling community frustration.
The crypto community is awaiting clarity on this chaotic token launch as the market cap continues to struggle.