The Plasma XPL token has plunged more than 80% from its peak price, leaving severe losses for both small investors and large traders. The crash occurred after heavy selling, accusations that insiders sold their coins first, and problems in the futures market that drained the project’s liquidity and undermined confidence.
The chain’s native token fell from roughly $1.69 to $0.31 after its public sale, an 80% drop that cut total market capitalization from $2.54 billion to about $587 million. The decline began immediately after the launch of the mainnet beta on September 25, 2025, contradicting the team’s promises of high liquidity from day one.
Several linked factors drove the price down. “Airdrop hunters” and early investors took profits quickly, triggering a flood of sell orders. At the same time, blockchain records showed large transfers to major exchanges before the token generation event, prompting accusations of pre-sales by insiders. Founder Paul Faecks denied these claims, stating that team coins would remain locked for three years.
Background and consequences of the collapse
Futures markets worsened the situation: on Hyperliquid, large accounts used high leverage while forced liquidations wiped out roughly $160 million in open interest during the violent price swings. The overall negative crypto market climate made things worse, with a broad downtrend in October 2025.
XPL’s tokenomics sets a maximum cap of 10 billion coins, with a token unlock for the team and investors valued at $90.06 million scheduled for October 25, 2025. This date will be crucial to assess whether Plasma can regain investor confidence.
Fears about pre-sales, accusations of manipulation and the fragility of futures markets reduce the likelihood of a quick recovery and push large institutions away. For builders and compliance officers, the lesson is clear: lock coins on-chain transparently and establish strict market controls.
