STBL Sell-off Triggers Insider Trading Claims and Market Anxiety

STBL has experienced a drastic decrease in value, losing 80% from its peak. This dramatic downturn has sparked controversy, with the founding team facing allegations of offloading millions of dollars’ worth of tokens. In the meantime, the project continues to develop plans to mint 100 million USST and launch a repurchase program by the end of October. This situation is creating a divide in the market, filled with both hopes for recovery and fears of eroded trust.

Key Takeaways

Significant Decline: STBL has fallen over 80% in value since its launch.
Allegations of Insider Trading: Major sell-offs by early investors have raised concerns of potential insider trading.
Market Reactions: The controversy has led to mixed sentiments in the investor community — some are hopeful for recovery, while others fear further declines.
Future Plans: STBL aims to mint 100 million USST and implement a repurchase program, amid questions about the potential impact on token supply and investor confidence.
Technical Outlook: Analysts provide mixed perspectives, with some seeing a potential accumulation phase, while others warn of continued uncertainty.

Understanding the Market Response

Since its launch, STBL, the token associated with a stablecoin protocol, has plunged dramatically. Initially peaking at approximately $0.60, the token's value dropped to around $0.0797, with a slight recovery bringing it to $0.11478, placing its market capitalization near $58 million.

STBL price performance. Source: BeInCrypto

On-chain data from Bubblemaps shows that five significant addresses sold all their STBL holdings, reportedly reaping about $17 million in profits. These addresses were active early in STBL's trading history, earning over $10 million during the token's launch in September.

STBL sell trades by 5 major traders. Source: Bubblemaps

This selling pattern has led to speculation within the crypto community about possible insider trading. Some users on X have described these traders as “snipers,” suggesting they might be executing algorithmic or insider-driven strategies rather than acting as regular market players.

“I’m not a fan of these snipers; they may be insiders, and they’ve caused my $STBL portfolio to suffer. Fortunately, the market has dipped, and I still have enough stablecoin to buy more at this low point,” one trader noted.

While some observers view these sellers as typical traders, STBL’s CEO Avtar Sehra disagreed, stating these transactions appeared to involve “orchestrated and professional accounts,” referring to the findings from Bubblemaps.

STBL's team has publicly denied any involvement in the sell-off, clarifying that treasury operations are transparent and that there have been no changes to team allocations or vesting schedules. They stated, “Our focus remains on building the protocol and fostering community adoption. No vesting will occur in this quarter, as any tokens meant for this period won’t be minted or enter circulation.”

Despite the uncertainties, STBL plans to mint 100 million USST in the fourth quarter, a move that some believe could exert additional selling pressure, especially given the shaken confidence among investors. Previously, BeInCrypto reported that the STBL team intends to initiate a USST repurchase and staking program by the end of October, aiming to restore liquidity and stabilize token value.

Technical Analysis: A Potential Turning Point?

Crypto analyst Michaël van de Poppe suggests that STBL’s current price movement might be signaling a critical accumulation phase. He notes that the token appears to be finding a technical bottom in the $0.09–$0.10 range. If market sentiment improves, there is a possibility for the token to rise towards the $0.17–$0.20 resistance levels — levels that were once support.

STBL price analysis. Source: Michaël van de Poppe

However, van de Poppe warns that a sustained upward trend may depend on a recovery in market volumes and attracting new capital into the project. Until that occurs, STBL's future remains uncertain, caught between cautious optimism for recovery and the looming threat of a loss of credibility.