Tokens launched on Circle’s Arc blockchain fell after traders said they sold following a livestream appearance by Panchu Vijay Pal, the founder of third-party stablecoin exchange XyloNet, who was mistaken by some viewers as a Circle employee. Pal appeared during Arc’s Developer Pre-Show from a home setup, while Circle’s main launch broadcast from New York featured CEO Jeremy Allaire and discussions with BlackRock, DTCC and Aave. TOLLY fell roughly 68% and ARGUS roughly 50% over 24 hours, according to GeckoTerminal data cited on Thursday. The affected assets were launchpad and meme tokens rather than Circle-issued tokens, and no ARC token was trading. Launchpads accounted for 82% of Arc’s $410.8 million in first-day DEX volume. The episode also triggered racist abuse on X and renewed debate about bias in crypto markets. XyloNet went live on Arc’s mainnet during the week despite the sell-off.