Why is Aevo cryptocurrency price falling? Reason to avoid buying the dip for now

The price of Aevo (AEVO), a decentralized derivatives exchange focused on options, perpetuals, and pre-launch trading, has plunged 25% today. This sharp drop has raised concerns among investors and raised questions about the token economics and governance of the project.

Aevo operates on Aevo L2, a custom Ethereum rollup built using the Optimism stack, allowing it to support over 5,000 transactions per second and process over $30 billion in trading volume. However, the recent price drop can be attributed to a major token unlocking event.

Major Token Unlock Triggers Liquidation

The Aevo team and investors have reportedly unlocked 82% of the total supply, which is equivalent to millions of dollars worth of AEVO tokens. This move has been criticized by some members of the community, including prominent crypto influencer Marius.capital, who alleged that the Aevo team now has $215 million in AEVO tokens, ready to sell at any time, while investors received $172 million in tokens.

Marius.capital expressed concern about the involvement of large exchanges such as Binance in supporting this measure, accusing developers, venture capitalists and exchanges of prioritizing personal profit over the project's technological advances and the interests of retail investors.