Solstice Foundation has denied allegations that insider wallets dumped SLX tokens following the project’s token generation event. It says a controversial wallet identified by users belonged to a verified market maker managing liquidity operations.
The clarification came after SLX experienced sharp launch-day volatility following its 25 May debut on Binance Alpha and other trading platforms.
Community backlash intensified after users accused wallets linked to large token movements of insider selling as the token declined heavily during its first trading sessions.
In a statement published on 26 May, the Solstice Foundation said the wallet in question did not belong to the team or the foundation itself.
Instead, the foundation said the address belonged to one of Solstice’s approved market makers, which was allegedly using the wallet to manage liquidity and maintain pricing consistency across markets.
The team also stated that core team allocations remain locked under previously disclosed vesting terms.
Airdrop backlash added pressure after launch
The launch also triggered criticism from users who participated in Solstice’s “Flares” points farming campaigns.
Some community members complained about:
- smaller-than-expected token allocations,
- vesting restrictions,
- and campaign-related registration costs.
According to the project’s published tokenomics, only around 24% of the 1bn SLX supply entered circulation at launch.
The largest allocation went toward community incentives and ecosystem programs. Also, team allocations remain subject to a 12-month cliff and vesting schedule.
Chart showed heavy volatility, not total collapse
CoinMarketCap data showed SLX initially trading above $0.22 before falling toward the $0.15-$0.16 range during heavy early selling.
The token later stabilized near $0.18 at the time of writing.
Trading volume exceeded $226m over 24 hours despite the project’s market capitalization sitting below $45m, reflecting unusually high turnover during the launch period.
The volatility reflects growing sensitivity around token launch structures, particularly as traders increasingly scrutinize market-maker activity, unlock schedules, and post-airdrop liquidity flows.
Similar tensions have emerged across several recent token launches as users become more skeptical of points-farming campaigns that later introduce vesting restrictions or smaller-than-expected distributions.
Final Summary
- Solstice denied claims that insider wallets dumped SLX after launch, saying the flagged address belonged to a verified market maker.
- The token experienced heavy launch volatility as users criticized vesting schedules, airdrop allocations, and liquidity conditions.