The Double Zero (2Z) token has recently plunged in value, sparking a contentious debate within the crypto community regarding accusations of an insider sell-off. Despite a public denial from the project's founder, market sentiment remains overwhelmingly negative, characterized by sustained bearish positioning from top traders.
The Steep Decline and Accusations of Insider Dumping
Shortly after its public launch on October 2nd, the Double Zero (2Z) altcoin experienced a dramatic price crash, plummeting over 50% from its high of $1.2 to below $0.50 on the Binance exchange. This sharp decline immediately triggered widespread accusations of a "max extract" or "rug-pull" by the project team. Community concerns were particularly amplified by the tokenomics, which revealed a significant 28% allocation to Jump Crypto, with an allowance to offload 5% (500 million 2Z) at launch, leading many to suspect that insiders were responsible for the initial sell-off pressure.
Founder's Rebuttal and Persistent Market Skepticism
In response to these mounting allegations, Austin Federa, the founder of Double Zero, explicitly dismissed claims of team selling. He asserted that all key stakeholders, including the team, founders, VCs, and the foundation, are locked and have not sold any tokens. However, this clarification did little to restore market confidence. Data indicated that top traders on Binance largely maintained their bearish stance, with short positions stubbornly holding at around 59% even after Federa's statement, underscoring a persistent lack of belief in the project's short-term prospects despite the founder's assurances.
Project Vision and Looming Challenges
Double Zero was created with an innovative vision to leverage underutilized fiber optic cables for low-latency blockchain network connections, rewarding contributors with the 2Z token, which even received SEC clearance as a non-security. Despite this regulatory clarity and ambitious utility, the token now faces the daunting task of navigating intense sell pressure and pervasive fear, uncertainty, and doubt (FUD) from the market before any sustainable recovery can be realistically achieved.
