As the ESPORTS token, issued by YooldoGames, made up of a Korea-based management team, plunged more than 90% in a day, allegations are emerging that an insider at the issuer took part in price rigging.
According to CoinMarketCap, a virtual asset market platform, on the 27th, the price of ESPORTS fell more than 90% from $0.7 to $0.05 as of 9:30 a.m. The reason is that from 6 p.m. on the 25th for four hours, 197.8 million ESPORTS, equal to 43% of the total circulating supply, were sold.
The ESPORTS sold were exchanged for 20,401 BNB coins. That amounts to about $13.65 million (about 20.5 billion won). The industry is also voicing suspicion that it may have been a rug pull (Rug Pull, investment withdrawal scam) by an insider. A rug pull refers to project operators or early holders selling a large amount of virtual assets, cashing out the funds, and abandoning the project.
ZachXBT, a virtual asset analyst, said on X (formerly Twitter), "Without an insider, it is not easy to sell a large volume in a short period." YooldoGames, the issuer of ESPORTS, is denying involvement regarding the latest plunge. The company said on X the previous day, "We are aware of the volatility in the ESPORTS token. We are actively investigating the cause of the plunge and the details, and will make an announcement as soon as the investigation is completed."
YooldoGames is a Blockchain play-to-earn (P2E) game platform developed by Korea-based game company Catze Labs. Led by CEO Shin Do-heon, Catze Labs drew attention in the Blockchain industry after taking first place in a game development competition hosted in 2023 by blockchain corporations including Coinbase, BNB Chain, and Klaytn.