Plasma (XPL) Debuts: Hype, Risks, and Investor Red Flags

Trading in XPL has just opened. The project aims to revolutionize the use of stablecoins, and Plasma has garnered a lot of attention. But there are warning signs for XPL investors.

Big day for Plasma (XPL): Starting at 3:00 PM CEST this Thursday, October 25th, Binance and other leading crypto exchanges plan to enable trading in XPL, with the Plasma blockchain set to launch a mainnet beta version shortly beforehand. The project focuses on stablecoins and, in a recent blog post , touts trillions of US dollars to be organized via Plasma in the future.

In pre-market trading, XPL is valued at around $0.70, with approximately 18 percent of all Plasma (1.8 billion XPL) entering the market today. This points to Plasma’s direct entry into the top 100 of the most capitalized cryptocurrencies—but is the premature praise justified?

Plasma token distribution: 50 percent of all XPL for the team and investors

Anyone looking at Plasma’s token distribution should be suspicious: 25 percent of all XPL is reserved for the team, and 25 percent for early investors. At the expected starting prices for Plasma, the creators are rewarding themselves with more than $4 billion – even if they’ll have to be patient.

Their total of 5 billion XPL will only be gradually released for sale starting September 25, 2026, at which point noticeable price pressure is likely to arise. Such hidden dilution of initial private investments is also currently being experienced at Hyperliquid (HYPE) .

Plasma app and credit card only planned so far

Plasma has raised a good $2 billion in stablecoins in advance and now plans to place them with more than 100 partners in the decentralized finance (DeFi) sector, including Aave and Ethena, where they are expected to generate returns. However, Plasma doesn’t yet have a functioning product for XPL’s IPO, and there’s only a waiting list for a planned app and credit card.

Controversial entrepreneur Christian Angermayer joins Plasma

Investors are critical of Christian Angermayer’s personality at Plasma. The co-founder has often stoked enormous expectations with projects like Atai Life Sciences and Northern Data, which turned into loss-making ventures for private shareholders. Does Christian Angermayer also have dreams in mind for Plasma and XPL that later shatter?

Conclusion: Launch day for Plasma and XPL – Blind trust would be reckless

In its self-promotion, XPL touts the expected rise in importance of stablecoins, which is expected to be driven by the Genius legislation passed in the US . However, in its XPL campaign, Plasma primarily raised Tether (USDT), the market leader among stablecoins – and this is precisely what is not yet prepared for Genius.

This means that US investors will have to wait another year until their XPL is eligible for sale. The bottom line is that Plasma seems rather unfinished, with warning signs ranging from token distribution to Christian Angermayer to plans instead of products being hard to miss. So, if you, as an investor, want to jump on the XPL bandwagon today, we strongly recommend doing your own research.

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(Featured image by Firosnv. Photography via Unsplash)

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