Limitless, an up and coming prediction market project, saw its token crash by over 58%. The team’s wallets started selling tokens, citing attempts at price stabilization and using concentrated liquidity.
The Limitless project saw its token crash by over 58%. LMTS sank on Thursday, becoming one of the day’s biggest losers just days after launching. On-chain data showed team wallets started depositing and trading tokens as soon as LMTS launched, causing an immediate drop in value.
LMTS lost over 58% of its value in the first day of trading, later making a small recovery. The token still relies on Aerodrome and Uniswap for its liquidity, leading to volatile prices. | Source: CoinGecko.Recently, Limitless raised a $10M funding round, expecting to tap a larger share of the growing prediction market. The funding was followed by the project’s TGE and allocation of unlocked LMTS.
LMTS fell to a local low of $0.20 hours after launching. The token started out at around $0.35, later recovering the $0.30 range.
Limitless offers a simple exchange with prediction markets, built on the Base blockchain. The project joined the recent trend of micro-betting, offering short-term resolution for fast-price markets.
LMTS was distributed to small accounts
The Limitless airdrop was one of the most anticipated events, as the token finally went live on October 22. As other platforms are still tokenless, the Limitless token was expected to serve as a proxy for the prediction market trend.
Multiple retail users and influencers claimed significant airdrops, also raising the risk for retail selling soon after launch.
LMTS tokens launched on Aerodrome Slipstream on Base, a DEX offering concentrated liquidity. Additionally, LMTS had several pairs on Uniswap.
Limitless claims all team wallets are locked
The founder of Limitless claimed all LMTS tokens were locked for 12 months, followed by a vesting schedule of gradual unlocks over two years.
The LMTS crash, however, caused some criticism, as it was precipitated by one specific wallet, containing unlocked LMTS tokens.
The team, however, actively participates in the concentrated liquidity on Aerodrome. This means the wallet is keeping the price of LMTS within an undisclosed range. After the initial launch, the wallet sold some of the tokens, leading to the initial price slide.
The Limitless team even feuded with Evgeny Gaevoy, founder of Wintermute, who was skeptical about the claims of an on-chain market maker strategy. For now, the actions of the team look like early selling for LMTS, and the wallet is yet to compensate with active buying to boost the price of LMTS.
However, the team declined the accusations of deliberate selling to lock in profits. Instead, the project’s wallet also returned to buying back LMTS. The token remains volatile, also pressured by other whales and retail sellers.
The wallet, assigned as providing ‘concentrated liquidity’, still locked in $1M in net gains, while re-buying $461K of LMTS tokens. In total, just $1.4M was enough to tank the price of LMTS, which is trading on relatively thin liquidity.
Limitless presented its so-called market maker wallet, which was among the biggest sellers of LMTS. Later, the wallet partially re-bought at a lower range. | Source: Dex Screener.Currently, the concentrated liquidity pool is swayed by having more LMTS, with $5.7M in token-based liquidity. The base stablecoin for trading offers only $4.2M in available liquidity.
Aerodrome allows for having liquidity assigned to a specific price range for a token, meaning LMTS may be bound to a range, with very thin liquidity outside that range. The token lacks any centralized listings, and is yet to continue its price discovery.
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Source: https://www.cryptopolitan.com/limitless-project-token-lmts-crashes-after-team-sells-soon-after-launch/
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