Plasma Labs issued a statement to counter speculation after its native XPL token faced heavy selling pressure in recent days. On Thursday, October 2, 2025, the company clarified that no team members or investors have sold tokens. Instead, all XPL allocations remain locked for three years with a one-year cliff. The firm also denied any ties with Wintermute, a leading market maker, stressing it has never contracted with them.
We’ve seen a number of rumors circulating since the launch of XPL and want to set the record straight.
1/ No team members have sold any XPL. All investor and team XPL is locked for 3 years with a 1 year cliff.
2/ Of our team of ~50, three spent time at Blur or Blast. Our team…
— Paul (@pauliepunt) October 1, 2025
The statement came after rumors linked Plasma’s core team to prior ventures and questioned token distribution. “No team members have sold any XPL. All investors and team XPL is locked for 3 years with a 1-year cliff,” said Paul, a Plasma co-founder. He further clarified that while some employees previously worked at Blur and Blast, others hail from Google, Facebook, Goldman Sachs, and Temasek.
Market Action and Chart Signals
XPL has experienced sharp volatility, with its price down more than 40% since its peak. Analyst Luke Martin noted on X that the $0.85 level is now crucial. The TradingView chart show the price moving down in a steady pattern, making lower highs and lower lows. But at $0.85, buyers stepped in strongly, pushing the price back up. This bounce hinted that people see value at that level and are willing to defend it.
This is the first $XPL setup since the selloff started that looks appealing for a bounce.
Combined with the team announcing they sold 0 tokens and not working with winternuke.
Would not be surprised to see this trading above $1.2 soon.
Second target: trillions pic.twitter.com/7TilTfsmIT
— Luke Martin (@VentureCoinist) October 1, 2025
Moreover, historical levels remain important. Resistance lies around $1.01, which must be reclaimed to shift momentum. Until then, the market could remain range-bound. “This is the first $XPL setup since the selloff started that looks appealing for a bounce,” Martin stated. He added that the team’s assurance of zero token sales strengthens sentiment.
Machi Big Brother’s $11M Loss
Celebrity trader Jeffrey “Machi Big Brother” Huang has taken heavy losses on Hyperliquid. Just two weeks ago, his 5x leveraged XPL long position showed $44 million in profit.
Today, according to Hyperdash data, it sits at an unrealized $10.9 million loss, with liquidation looming at $0.4555. Besides this, Huang holds a 15x Ether long worth $1.2 million, which carries more than $500,000 in unrealized profit.
XPL faces a decisive moment at the $0.85 level. Plasma’s clarity on token locks could restore trust, but volatility remains a major risk.
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