‘Team, VCs are locked’ – Double Zero founder denies 2Z rugging amid sell-offs
Key Takeaways
Why did Double Zero’s worth crash?
The altcoin plunged amid rumors of a crew sell-off.
Did the founder’s clarification assist the token?
No, gamers had been nonetheless closely shorting it as of this writing.
Double Zero [2Z] continues to seize headlines amid accusations of insider sell-off after the token dumped greater than 50% after launch. The token jumped to a excessive of $1.2 after it started buying and selling publicly on the 2nd of October.
However over the previous two days, the altcoin has plunged under $0.50, marking over 60% dip on the Binance change. Though it reclaimed $0.50 at press time, the crash sparked accusations of a dump by the challenge crew.
Supply: 2Z/USDT, TradingView
Founder slams alleged rug-pull claims
One consumer, Evans, claimed that the DEPIN token won’t ever commerce above $1.2 once more, including that it’s a ‘max extract.’ That’s a standard Crypto Twitter time period just like rug-pulling or scamming.
On his half, dealer CoinMamba said,
“Can’t blame the airdrop sellers right here since there was no airdrop. It’s actually the crew promoting…”
Heading into the launch, some group members had been involved concerning the quantity of tokens allotted to Bounce Crypto.
Supply: Double Zero
In keeping with the challenge’s tokenomics, Bounce has been allotted 28% of 10 billion tokens. And so they had been allowed to dump 5% or 500 million 2Z throughout the launch and preserve the remaining locked up.
General, solely 3.47 billion tokens had been unlocked throughout launch (35% of complete provide), with the remaining set to be launched by This autumn 2026.
Nevertheless, Double Zero founder, Austin Federa, dismissed the claims of crew promoting, including that everybody is locked.
“Workforce is locked, Founders are locked, VCs are locked. Basis has not offered any tokens.”
Supply: X
However the clarification didn’t enhance market sentiment and positioning. In keeping with CoinGlass, Binance’s prime merchants elevated their brief positions from 56% to 60% prior to now two days.
After Federa’s assertion, the brief positioning dropped only one% to 59%, suggesting most gamers had been nonetheless shorting the DEPIN challenge.
Supply: CoinGlass
The challenge was fashioned to leverage underutilized fiber optic cables and dedicate them to blockchain community connections for low latency and higher velocity.
Contributors providing the fibre assets are rewarded with the token (2Z), which was cleared by the SEC as non-security.
Regardless of the regulatory readability, it appears the token should climate the continuing promote stress and FUD earlier than a sustainable restoration might be achieved.
