Evmos, a blockchain platform backed by Cosmos and compatible with Ethereum, is facing allegations that co-founder Ashish Khosla has been selling substantial quantities of the project’s native token following his departure. This has led to a sharp decrease in the token’s price and raised concerns within the Evmos community.
Details of Khosla’s Token Sales
According to a recent Twitter thread by the Evmos team, Khosla is reportedly attempting to sell 500,000 Evmos tokens, valued at $70,000, through the decentralized exchange Osmosis within the Cosmos ecosystem. This action has drawn attention as it could impact the stability and reputation of the project.
Khosla’s Allotted Tokens and Vesting Schedule
It is important to note that Khosla was originally allocated 34 million Evmos tokens, valued at $4.7 million, on a four-year vesting schedule. As per this schedule, Khosla continues to receive newly vested tokens into his assigned address over the designated period.
Evmos Background and Development
Evmos is a Cosmos-backed blockchain that integrates the Ethereum Virtual Machine (EVM). While it utilizes the Cosmos software stack, it is also compatible with Ethereum applications. Last year, the project successfully raised $27 million in a token fundraising round led by Polychain Capital. Federico Kunze Küllmer, the other co-founder, currently leads the development of Evmos.
Khosla’s Token Sales and Market Impact
So far, Khosla has sold 144,000 tokens, amounting to $40,000 at the time of sale, according to on-chain findings from Jessica Huhnke, a web3 data analyst and engineer at Flipside Crypto. However, this accounts for only 1.5% of the total Evmos tokens sold since April 30. In comparison, other users have collectively sold around 9 million tokens, as reported by Huhnke.
Disagreements and Departure
The Evmos team stated that Khosla left the project due to “operational misalignment and disagreements over accountability.” They are actively engaged in discussions with Khosla to transfer the tokens back to the Evmos Foundation instead of having them sold on decentralized exchanges. The team also shared Khosla’s GitHub contributions to highlight his involvement in the project.
Token Price Decline and Evmos’ Efforts
Coinciding with Khosla’s sell-offs, the price of Evmos tokens has plummeted by over 50% this May, dropping from $0.30 at the beginning of the month to the current value of $0.14. To mitigate further damage to the token’s price and restore stability, the Evmos team is working closely with Khosla to ensure the tokens are returned to the Evmos Foundation.
The alleged divestment of Evmos tokens by co-founder Ashish Khosla following his departure has caused concern within the project and impacted the token’s price. The Evmos team is actively addressing the situation, aiming to retrieve the tokens and maintain stability within the project. It remains to be seen how these efforts will affect the market and the future of Evmos as a Cosmos-backed blockchain with compatibility for Ethereum applications.