Neo Foundation Responds to Price Manipulation Claims Amid Recent Token Sale Controversy
Recently, the cryptocurrency community has been abuzz with discussions surrounding NEO, especially following a significant price drop. Investors expressed concerns over potential insider trading and price manipulation, prompting the Neo Foundation to step in with a public response. The foundation firmly denied any involvement in the recent token sales that coincided with a staggering 35% decline in NEO’s price from March 25 to April 1, 2025. The official statement released on X (formerly Twitter) by Neo Smart Economy sought to clarify the situation and reassure the community that the foundation and its team members did not engage in any unauthorized selling of their tokens during this volatile period.
As part of their response, the Neo Foundation conducted an internal investigation to identify any suspicious transactions that might have influenced market trends. This investigation uncovered alarming activity tied to a Neo Legacy address, which had amassed 11.8 million tokens between 2017 and 2021. Following this accumulation, 11.1 million tokens were transferred to the Neo 3 blockchain in 2021. Notably, a series of transfers initiated on March 24, 2025, led to the movement of 9.25 million tokens—representing 13.2% of the circulating supply—into a Binance deposit wallet, amounting to approximately $60 million at an average price of $6.5 per token. Although these movements coincide with the price drop, the foundation underscored that any correlation remains speculative, and they are not able to confirm a direct cause-and-effect relationship at this time.
The unfolding situation has left investor sentiment in a state of panic and fear. As NEO experienced sharp selling pressure, many holders began to liquidate their positions, intensifying the downturn. According to AMBCrypto’s analysis, the market sentiment around NEO has soured, as indicated by a decline in its Chaikin Money Flow (CMF) from 0.07 to -0.19 since March 24. This sharp decrease points to heightened selling activity during that time frame. Additionally, a downturn in the Relative Strength Index (RSI), which fell from 42 into oversold territory, underscores the prevailing bearish momentum surrounding the cryptocurrency.
Despite this panic spreading through the market, there has been an interesting development in NEO’s spot netflow, which remained positive over the past eight days, sitting at $2.07 million at the time of writing. This indicates a situation where inflow is outpacing outflow, suggesting that while panic selling is rampant, traders continue to see a potential opportunity amidst the chaos. Nevertheless, the intense fear among investors hints at a broader lack of confidence in NEO’s future performance, with many bracing for further declines as they seek to mitigate risk.
As the situation stands, the aftermath of this scandal continues to create waves of uncertainty among investors. The prevailing sentiment suggests that, if panic selling persists, prices could potentially decline to below $4.5, which would bring them to levels last seen in June 2017 around $4.3. In light of these developments, it becomes crucial for both traders and investors to remain vigilant and analyze market trends carefully before making decisions in a volatile environment.
In conclusion, the NEO Foundation’s firm denial of any wrongdoing amidst recent token sales has done little to quell the unrest within the community. The revelations of large-scale transfers and declining prices have resulted in market participants responding with anxiety and panic selling. As the foundation continues to investigate the situation, the community holds its breath, hoping for clarity and stability in the future. With historical price points now in focus, NEO’s trajectory remains uncertain as it navigates through this turbulent chapter. For investors, understanding the underlying factors influencing NEO’s price movement will be vital in adapting their strategies and mitigating future risks in the ever-evolving crypto landscape.
