Neo Foundation Denies Involvement in Recent Sales of NEO Tokens Following Price Drop

Updated April 2, 2025, 1:15 a.m. PDT — By Daniel

The Neo Foundation has denied any involvement in recent sales of NEO tokens following a major price decline of 35.85% between 24th March and 1st April.

In a statement addressing the sudden downturn, the foundation clarified that neither it nor its development division, Neo Global Development (NGD), had engaged in the sale of any NEO tokens. It also ruled out the possibility of transactions by founders or core team members.

Following the price drop, the foundation announced the initiation of an investigation into the origins of large-scale transactions that coincided with the decline. The price of NEO plummeted from around $8 to $5 during this period, which may have alarmed many long-standing holders.

Their analysis has uncovered substantial activity linked to a Neo Legacy address, which accumulated approximately 11.8 million NEO from 2017 to 2021. This address transferred over 11.1 million NEO to the Neo N3 blockchain in 2021, with the tokens being distributed across various wallets over several years and ultimately reaching a deposit address on Binance.

From 24th March, approximately 9.25 million NEO—about 13.2% of the total circulating supply—was seen moving through intermediary wallets to Binance, at an estimated value of $60 million based on an average price of $6.50 per token.

While the timing of these movements coincides with the observed price drop, the foundation maintains that any connection is speculative. “It’s important to note that the activity of this address and the price changes are merely speculative correlations,” acknowledged the Neo Foundation. It further stated, “While the timing of these transfers aligns with the observed price drop, we cannot confirm a direct causal relationship at this stage.”

Currently, the wallet in question still holds 2 million NEO, and the Neo Foundation is working with blockchain analytics firms and exchanges to trace the tokens further. “We understand the concerns this volatility and these large-scale transfers have caused within the Neo community, and we share your desire for clarity and stability,” the foundation asserted.

As the investigation continues, the foundation promises to keep the public informed and ensure the long-term stability of the ecosystem.

The decline in NEO’s price comes amid a broader sell-off in the cryptocurrency market, which saw altcoins and memecoins experience sudden liquidations on 1st April.

Act I The AI Prophecy (ACT) saw a nearly 60% plummet, erasing $96 million in value, while several meme tokens also faced double-digit losses. According to blockchain analytics platform Lookonchain, modifications to Binance’s leverage and margin tiers triggered a cascade of liquidations that contributed to the market crash.

NEO, frequently dubbed the ‘Ethereum of China,’ registers a 30.8% loss for the week before recovering slightly with a 6.7% bounce. Its daily trading volume has decreased by 28.4% to $131 million, and its market capitalisation stands at $390 million, significantly lower than its all-time high of $198.