NEO Foundation Denies Insider Trading Claims as Token Prices Experience 35% Drop Amidst Investigation

• NEO Foundation faces scrutiny as NEO token prices plummet 35%, igniting allegations of insider trading amidst high selling pressure.

• Recent investigations reveal that a significant long-term holder sold 9.25 million tokens, prompting fears of market manipulation.

• In response, the NEO Foundation has categorically denied any involvement, clarifying their commitment to transparency and market integrity.

Amid recent turmoil, the NEO Foundation denies allegations of insider trading as prices fall sharply; a 9.25 million token sale raises eyebrows.

Investigation into Massive Binance Transfers: Unraveling the Details

A notable drop in NEO prices has created ripples throughout the cryptocurrency market, with prices sliding from $8 to $5 between March 24 and April 1, 2025. This substantial decline has not only unsettled investors but has also led to the NEO Foundation acting swiftly to investigate these alarming market fluctuations.

The Foundation initiated an internal probe to track down irregularities within wallet transactions. Initial findings pointed to a Neo Legacy address that had amassed 11.8 million tokens between 2017 and 2021. Notably, these tokens were transitioned to the Neo 3 blockchain, which would eventually see a considerable portion transferred to multiple wallets, ultimately culminating in a substantial deposit at Binance.

On March 24, 2025, the Neo 3 wallet dramatically offloaded 9.25 million tokens—approximately 13.2% of the circulating supply—to Binance, with a transaction value approximating $60 million. This strategic selling left just 2 million tokens remaining in the Neo 3 wallets, raising alarms within the investing community.

However, the Foundation emphasized that while there was a notable correlation in timing, they could not definitively confirm a connection between these sales and the subsequent price drop, stating: “While the timing of these transfers aligns with the observed price drop, we cannot confirm a direct causal relationship at this stage.”

Market Reactions and Future Outlook: Navigating the Turbulence

The aftermath of these events has created an environment filled with uncertainty and fear among investors. According to COINOTAG’s analysis, the market sentiment shifted dramatically towards panic selling, leading many holders to liquidate their assets.

The Chaikin Money Flow (CMF) metric—an indicator of buying and selling pressure—plummeted from 0.07 to -0.19, signaling an overwhelming tide of sell orders that has stained the market in blood-red. Furthermore, the Relative Strength Index (RSI) indicates significant bearish sentiment having descended into oversold territory, further amplifying concerns.

Despite the surrounding panic, NEO’s spot net flow has surprisingly remained positive, recording a net flow of $2.07 million over the last eight days. This indicates that while many are rushing to sell amidst fears of further downturns, there is still a segment of market participants looking to purchase at lower price points. This discrepancy underscores a confliction in sentiment between fear and potential value-seeking behavior.

In conclusion, the recent turmoil surrounding the NEO token has created a volatile environment for investors. With sentiments skewing sharply towards fear, there’s a palpable lack of confidence in the investment community, leading to heightened selling pressure. Observers are now closely watching to see if panic selling persists, which could push NEO’s price below crucial support levels of $4.5, reminiscent of prices last witnessed in June 2017.