The cryptocurrency community was thrown into disarray as the JUP token, native to Solana DEX Jupiter, witnessed a staggering decline of over 63% within the initial 24 hours of its launch. This unexpected nosedive sharply contrasts the customary surge seen among freshly introduced crypto assets, often experiencing gains of up to 100% on their inaugural trading day.
As per CoinMarketCap data, JUP plummeted from a peak of $1.2707 to a low of $0.5795 within the first day of trading, raising eyebrows and sparking allegations within the crypto space.
Renowned crypto critic Adam Cochran, in a recent post on X, accused the Jupiter team of orchestrating a rug-pull on the JUP token. Cochran's claims are rooted in the assertion that the project's team allocated a significant 50% of the tokens to themselves, leveraging their platform, and subsequently withdrawing liquidity from the coin.
Cochran further contended that the team executed a liquidity withdrawal in cash, part of which was allegedly provided to the development team. According to his allegations, the team managed to cash out a staggering $30 million on the very first day, all while maintaining a 50% ownership stake. Such actions, if proven true, cast a shadow on what could have been a prosperous long-term venture.
The critical perspective presented by Cochran is supported by an online screenshot of a conversation with the Jupiter team. In this exchange, the team was accused of engaging in fundraising activities by removing liquidity from the pool without transparent disclosure to the public. In response, Jupiter's founder, identified as "Meow," labeled the claims as an "open market sale."
Facing the backlash, Meow countered Cochran's criticism, dismissing it as "shitposting with zero facts." Despite the pushback, the founder expressed intentions to conduct a thorough post-launch analysis, aiming to address the concerns and controversies surrounding Jupiter's tumultuous entry into the market.
The Jupiter JUP saga serves as a stark reminder of the risks and uncertainties inherent in the crypto space, urging investors to exercise diligence and caution in navigating the ever-evolving landscape.
