Yooldo says external partner drove May 25 ESPORTS token drop

The company said a partner’s market operations allegedly diverged from agreed terms after outside OTC and market-making firms were brought in, and outlined liquidity support, new partners, game updates and a buyback plan.

Summary

Yooldo said the sharp decline in the ESPORTS token on May 25 was not initiated or directed by the project team, but stemmed from a partner whose market operations allegedly diverged from agreed terms after the project brought in external OTC and market-making firms. The company said some selling pressure may have come from tokens previously allocated to that partner. Yooldo added that it is working with exchanges and other parties on an investigation while pursuing liquidity support, new long-term partners, game updates and a buyback plan.

Terms & Concepts
  • OTC: Over-the-counter trading conducted directly rather than through a public exchange order book.
  • market-making: Trading activity aimed at supplying buy and sell orders to support liquidity.
  • buyback plan: A program to repurchase tokens, often intended to help support market conditions.