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Yooldo: The ESPORTS crash on May 25 was caused by abnormal market maker behavior; the team denies leading the sell-off.
BlockBeats news, July 2nd, Yooldo officially released a statement regarding the significant market price drop on May 25th.
The team stated that the sharp decline in ESPORTS was not a sell-off initiated or directed by the project team, but rather occurred after introducing external OTC and market-making partners to provide liquidity, when one of the partners engaged in market operations contrary to the agreement.
The statement said that according to preliminary investigations, part of the selling pressure may have come from tokens previously allocated to that partner, but due to the fund path passing through multiple wallets and trading platforms, complete tracking remains difficult. The project team emphasized that since the incident, they have been cooperating with exchanges and relevant parties to investigate, and have taken measures such as providing liquidity support and forming new long-term partnerships to mitigate market impact.
The team also stated that they will launch game updates and a buyback plan in the future, and urged other projects in the industry to be cautious when selecting market-making partners to avoid similar risks recurring.