- The JUP token of Solana DEX Jupiter tanked by over 63% after its launch.
- The Jupiter team has been accused of withdrawing liquidity of the coin.
- Jupiter’s founder intends to conduct a thorough post-launch analysis later.
The newly introduced JUP token from Jupiter, a decentralized exchange built on Solana, has caught the crypto community off guard with its significant decline of over 63% within just 24 hours of its launch. This starkly contrasts the typical pattern observed among newly introduced crypto assets, which frequently see gains of up to 100% on their first day of trading.
According to data from CoinMarketCap, JUP has tanked from a height of $1.2707 to as low as $0.5795 within the last 24 hours.
Online crypto pundits have pointed accusing fingers at the team behind the project, alleging them of technically rug-pulling the JUP token. In a recent post on X, renowned crypto critic Adam Cochran argued that the Jupiter team allocated 50% of the tokens to themselves, leveraging their platform, which also compensated them.
Furthermore, he claimed they withdrew liquidity from the pool in cash and provided a portion to the development team. He stated they effectively cashed out $30 million on day one with no lockup while retaining a 50% ownership stake. Cochran expressed concern that such actions tarnish the reputation of what could have been a highly prosperous long-term venture.
Notably, Cochran’s perspective is grounded in an online screenshot of a conversation with the Jupiter team. In this exchange, they were accused of conducting fundraising by removing liquidity from the pool without proper disclosure to the public. In response, the founder of Jupiter, identified as “Meow,” asserted that “it was an open market sale.”
Moreover, Meow has responded to Cochran’s criticism, characterizing it as “shitposting with zero facts.” The Jupiter founder expressed their intention to conduct a thorough post-launch analysis later and move forward from the situation.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
