Key Points
- •Novastro’s token XNL dropped 75% post-TGE, raising concerns.
- •Public sale participants are facing a 75% value loss.
- •The community is questioning Kaito AI’s responsibility in vetting projects.
Novastro's XNL token, launched on Kaito AI, plunged 75% below its public sale price to $0.0126 just two days after its TGE, raising concerns about platform oversight and investor losses.
The sharp decline in XNL's value highlights potential inadequacies in the due diligence processes of fundraising platforms like Kaito AI, affecting investor confidence and sparking community scrutiny.
Massive XNL Drop Spurs Scrutiny of Kaito AI's Due Diligence
Novastro conducted its public sale via Kaito AI, raising $2 million at a valuation reportedly 230% oversubscribed. Despite the optimistic start, the token dropped significantly after its TGE, losing over 75% in value within days. Community members have raised concerns about the lack of transparency from Novastro, emphasizing the absence of public statements from its leadership team. Kaito AI, led by CEO Yu Hu, has not issued a statement addressing these losses or their due diligence processes. Prominent crypto voices have highlighted this fall, with KOL AB Kuai.Dong noting it as a rare occurrence for tokens to dip below offering prices post-launch.
Kaito AI's public offering project Novastro opened with a drop of approximately 44% below its initial offering price... becoming one of the few projects recently to fall below its offering price after listing. - AB Kuai.Dong, Crypto KOL, Odaily
Market Experts Cite Lack of Major Exchange Listings for Volatility
Novastro’s rapid value decline is reminiscent of similar RWA token falls between 2023-2025, where ambitious tokenomics without immediate liquidity led to short-term collapses post-TGE.
As reported by CoinMarketCap, Novastro (XNL) trades at $0.01 post-launch, reflecting a 75% loss from its initial sale price. With no circulating supply data, its market cap remains uncalculated, and trading volume reached $7.15 million, marking a subtle 1.96% change within 24 hours. Throughout recent periods, XNL saw a consistent 74.84% decline. Market analysts suggest that Novastro's lack of listing on major exchanges like Binance or Coinbase has exacerbated liquidity issues, contributing to its volatile price movement. Community sentiment on the absence of large exchange listings further highlights concerns about future token stability.
Market analysts suggest that Novastro's lack of listing on major exchanges like Binance or Coinbase has exacerbated liquidity issues, contributing to its volatile price movement. Community sentiment on the absence of large exchange listings further highlights concerns about future token stability.