In the cryptocurrency market, the price is the only thing that doesn't lie. Those who survive here have experienced countless instances of false promises, project scams, and the people here no longer believe in stories. Now, having fallen from a peak of 1.7u to around 0.12, the market's confidence has long since collapsed. This once-promising project that Tether had high hopes for has undergone a death spiral of plummeting coin prices, excessive unlocks, and crumbling market confidence. How can it break free? Next, let's take a look at what exactly happened and where the future lies.
1. The Collapse of Paper Prosperity
At the launch of #plasma , backed by Tether, it raised 72 million yuan and claimed to have ultra-high performance with zero gas fee transactions, making it a rising star. However, in actual operation, it encountered many problems. For instance, historical on-chain data shows that the actual transaction processing speed significantly differs from the official claimed throughput of thousands. Moreover, what worries holders is that @Plasma code updates are slow, and the project team has not explained the reasons for the delays to the community, merely offering various excuses, leading to distrust within the community and further triggering token sell-offs.
The design of the token has significant issues. Although the initial circulating supply is only eighteen percent, the team and investors occupy fifty percent of the total tokens, with the lockup period being just one year. The large unlock in 2026 will undoubtedly bring panic to the market amid the current severe liquidity shortage in the crypto market.
The false prosperity of the ecosystem did not bring real users to the project. For instance, the initial airdrop was very generous, creating a temporary sensation, but very few real users remained; most just sold right after receiving their tokens. The TVL during the early collaboration with Aave and Pendle also plummeted over time, leaving almost none.
2. Future Hopes
After discussing so many issues, what about the benefits? Don't worry, let me explain slowly:
The core value of #plasma is that it is a high-performance public chain aimed at stablecoins. As a differentiated public chain in a specific track, it allows @Plasma to avoid facing the challenges of those super giants right from the start, giving it some buffer time. Furthermore, its focus on the characteristics of stablecoins enables it to excel in its small ecosystem, just like in a martial arts novel, where the fastest sword wins, and #plasma happens to have the advantage of speed. Additionally, its biggest trump card is the support from Tether. With Tether backing it, #plasma can collaborate with various institutions and leverage Tether's absolute leading position in the stablecoin market to launch verifiable on-chain yield products to attract users.
The project team also needs to make some trade-offs if the token price really crashes. Losing public support means losing everything. After the large unlock and sell-off a few days ago, the price of #plasma fell to 0.12. However, in recent days, it has recovered somewhat, indicating that the project team is not neglecting its responsibilities and is not just focused on selling tokens. The token price still needs @Plasma to stabilize; otherwise, if #plasma holds almost fifty percent of the tokens, it's likely that no one will dare to stay invested in this project.
Summary:
In the crypto world, are there cryptocurrencies that have plummeted tenfold and then broken new highs? Of course, but more often they crash to zero. The plunge of #plasma is the market's verdict, but it is not a death sentence. What we need to focus on next are three data points: #plasma total TVL, whether the token has utility, and large unlock dates. Investment requires caution. In the face of the upcoming super market for stablecoins, I believe #plasma will not give up this opportunity. In a market that doesn't buy stories, #plasma needs to prove its true value.