Key Highlights
- ASTER token fell over 25% amid rumors of CZ-linked insider selling, which the CEO denied.
- Aster has repurchased 254M tokens, burned 78M, and launched Stage 6 buybacks using trading fees.
- Despite the price drop, platform activity remains strong with $1.147B TVL and $141B monthly trading volume.
Aster CEO Leonard Aster has defended the decentralized crypto exchange against claims that the project’s tokens were dumped by insiders, including Binance co-founder Changpeng Zhao (CZ).
In a detailed statement on X on Tuesday, Leonard said the rumors were “factually incorrect” and made “without any evidence.” He added that the exchange operates independently and follows transparent rules.
“These allegations are made without any evidence to deliberately sway public opinion with malicious intent,” he said.
Leonard also clarified that while CZ is an advisor and YZi Labs is an investor, “Aster is an independent project not controlled or directly operated by CZ or Binance entities.”
What led to the controversy
The situation started when a post on X claimed that a wallet linked to CZ sold over $30 million worth of ASTER tokens, or roughly 34 million coins. The claim sparked panic selling, pushing ASTER down almost 10% in a short time and about 7% in 24 hours.
Zhao quickly denied the report, calling it fake news and urging followers to “unfollow the guys posting fake news.” Lookonchain, a blockchain tracker, later confirmed the transfer had nothing to do with CZ. Despite this clarity, the rumor intensified among investors who are already worried about the token’s price drop.
Trading activity
At the time of writing, Aster is trading for $0.57, up 0.92% in the last 24 hours. However, the token is down 11% in a week. Trading activities have dropped by 16% to $151 million, while the market cap sits at $1.48 billion.
The token has broken below the $0.80 support level, which has now turned into resistance. ASTER has been trading around $0.81 and $0.61 since December before climbing to $0.55, and it has not been able to rise above that level.
While the token price has declined, activity on the Aster platform remains strong. According to data from DefiLlama, Aster’s total value locked has reached approximately $1.147 billion, with monthly fees climbing to $347 million. The exchange also recorded over $141 billion in monthly perpetual trading volume. This means traders are still engaging with the token despite the downturn.
Leonard outlines buyback program
In the X post, Leonard highlighted the project’s token buyback program as proof of commitment. He said Aster has repurchased 254 million tokens and burned 78 million so far, with more burns planned soon. He said buybacks are now automated on-chain and funded through trading fees to improve transparency and predictability.
Stage 6 buybacks are expected to begin on February 4, where up to 80% of daily platform fees will be used for token repurchases. Leonard said this stage will be the last trading airdrop and that future circulating supply growth will be slowed. He added that the remaining buyback tokens, totalling about 98 million, will be burned, and that the monthly 1% token unlock is paused until staking starts.
Leonard also outlined upcoming developments, including staking for holders and a privacy-focused Layer-1 network expected by March, as Aster works to rebuild trust and stabilize sentiment.
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