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The Neo Foundation has denied allegations of large-scale token sales following a sharp 35% decline in the price of NEO, the network’s native cryptocurrency. The organization also announced an internal investigation into recent token transfers to Binance, which some community members suspect may have contributed to the sudden price drop.
The controversy emerged after blockchain analysts noticed significant NEO token movements, leading to speculation that the foundation had offloaded a substantial amount of tokens. In response, the Neo Foundation issued a statement clarifying that it had not engaged in any recent token sales that could have triggered the decline.
The foundation emphasized its long-term commitment to the Neo ecosystem, stating that any token movements were for operational purposes rather than liquidation. To address community concerns, Neo is now reviewing the transfers in question and working to ensure transparency regarding its token management strategies.
Neo, often referred to as “China’s Ethereum,” has experienced volatility in the past, with price swings influenced by market sentiment and broader regulatory developments in the blockchain space. The recent price decline has raised concerns among investors about possible internal sell-offs or institutional exits.
The foundation’s investigation will focus on tracking the nature of the Binance transactions and identifying whether any third-party actors were involved in influencing the token’s price. The outcome of this review could play a key role in restoring investor confidence and clarifying Neo’s position on token management.
As the situation unfolds, traders and stakeholders will closely watch for further statements from the Neo Foundation, as well as any on-chain evidence that might support or refute the allegations.
