ESPORTS: The May 25th Plunge Was Caused by Misconduct of a Cooperative Market Maker

Odaily Planet Daily News: Yooldo posted on X platform, issuing an official statement regarding the significant price drop of the ESPORTS token on May 25th. The event was not initiated, led, or intended by the ESPORTS team, and the team remains committed to building a healthy ecosystem and creating long-term value for the community.

Key findings of the investigation are as follows: The ESPORTS team had previously engaged external OTC and market-making partners to support liquidity and ecosystem development; the investigation found that one of these partners engaged in activities not agreed upon with the team; based on available information, the team believes that the substantial selling activity originated from tokens previously provided to this partner. However, due to transactions passing through multiple wallets, counterparties, and exchanges, tracking the complete flow of funds is difficult; the ESPORTS team did not execute, coordinate, or instruct any market sell-offs aimed at causing a price decline. After discovering the issue, the team collaborated with exchanges and relevant parties to investigate the incident and contain further damage; the team has begun implementing recovery measures, including liquidity support and onboarding new long-term partners, but still faces challenges from the ongoing selling pressure of this market maker and market activities.

Yooldo also stated that new game updates and additional buyback plans will be announced soon, and advised all project founders to only partner with reputable and trustworthy market makers.