The developer wallet for Test Token (TST) has liquidated its position. Within the past 14 hours, it sold over $30,400 worth of tokens in four separate transactions. Blockchain data confirms that the sales left the wallet with zero TST holdings, marking the developer’s complete exit from the asset’s market.
Notably, though, the developer liquidation move comes three days after the token experienced a 65% flash crash within 15 minutes. It mirrors other tokens that have made similar price actions. For example, in October 2024, BGB, the native token of the Bitget exchange platform, decreased by 50% within 6 minutes, resulting in significant losses for investors.
TST Holds Strong — Why?
Despite the sell-off, TST’s price has shown some stability, dropping by a mere 1% suggesting that the developer’s move is not surprising to its holders. A few months ago, after the launch of the token, Binance co-founder Changpeng Zhao (CZ) clarified that it was created purely for tutorial purposes involving the Four.Meme platform. Hence, TST carries no real-world utility.
Additionally, selling around $30,000 worth of tokens carrying over $24 million in market capitalization has a minimal impact on its valuation, especially when investors are aware of its lack of utility.
Interestingly, the developer would have gained more if the TST holdings were liquidated around the all-time-high market valuation of $219 million. The move would have netted over $276,000 instead of today’s $30,400 exit. However, with no active development or governance in place, the token remains a speculative play with high risk, as hinted by the selloff.
Meanwhile, CZ also revealed that the private key to the address that created TST was deleted by the team, eliminating the possibility of further administrative control. However, the statement now appears controversial as the same wallet executed the token sales. At press time, the Binance co-founder has not commented on the development.
Creator Platforms Support the Memecoin Sector
In the Memecoin sector, creator platforms are introducing instruments to foster token launches and support their ecosystem. Four.Meme recently unveiled the CTO Grant Program aimed at supporting long-term project success.
Pump.fun, Solana’s first memecoin launchpad, has created the Glass Full Foundation to strengthen its most promising ecosystem tokens amid declining platform revenues. The initiative will inject finance into select memecoin projects via a selection process that is yet to be disclosed.
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