Across Protocol’s ACX Token Drops 10% Amid Governance Manipulation Claims

Across Protocol’s ACX token experienced a significant 10% decline in value following allegations of governance manipulation and insider trading. These accusations, which surfaced on Friday, suggest that core contributors may have engaged in front-running activities related to a Binance listing and still maintain control over the decentralized DAO (Decentralized Autonomous Organization).

The allegations have raised concerns among traders, leading to a noticeable drop in the token's value. Despite the team's swift denial of these claims, the market's reaction indicates a loss of confidence in the token's integrity. The price drop was accompanied by a spike in trading volume, reflecting the swift response of market participants to the news.

Co-founder Hart Lambur has vehemently denied the accusations, asserting that the ACX tokens are being utilized as intended to build and expand the protocol. In a post on Friday, Lambur stated that Risk Labs, the company behind Across Protocol, was granted ACX tokens from the DAO to develop the protocol. He emphasized that this practice is standard for DAOs and that the tokens have been used to fund the development of Across v3 and v4, as well as to hire new team members.

Lambur's response aims to reassure the community that the tokens are being used appropriately and that the protocol's development is progressing as planned. However, the allegations have undoubtedly shaken trader confidence, and the impact on the token's value remains a concern. The situation highlights the challenges faced by decentralized protocols in maintaining transparency and trust in the face of such accusations.