Evmos Foundation Reclaims a Large Amount of EVMOS Tokens

Evmos Foundation reclaims a large amount of EVMOS tokens

In the latest Twitter post by the Evmos Foundation, the development team behind the EVM blockchain project in the Cosmos ecosystem shared that they have succeeded in recovering a total of 59.4 million EVMOS tokens (sequivalent to 7.6 million USD), from former co-founder Akash Khosla. This repayment agreement does not disclose the amount paid between the Evmos Foundation and Akash Khosla.

However, this is considered an important step that helps rebalance token distribution to the project team and contributors, addressing concerns about initial token price manipulation and at the same time enhancing economic efficiency. economy by reducing the supply circulating in the market.

In an interview with The Block, the former founder of Evmos shared about his decision to return his tokens to protect the best interests of the project and the community:

I believe that returning the tokens is the best decision for both the project and the community, ensuring that those who actively contribute to the growth and development of Evmos will keep EVMOS tokens in their hands.

Akash Khosla left Evmos in 2022 due to disagreements over project management and development. Currently, the project is being led by Federico Kunze Küllmer, who is the second co-founder and Director of the Evmos Foundation.

Evmos is a blockchain compatible with decentralized applications on Ethereum, built on the Cosmos platform. In November 2022, the project succeeded in raising 27 million USD from organizations such as Polychain Capital, Galaxy Digital, Huobi, HashKey Capital, Coinbase Ventures, Circle Ventures, and many other partners.

Khosla’s action to return these tokens marks an important step for Evmos, especially after the development team announced the sale of a large amount of EVMOS tokens through AMM DEX Osmosis in May 2023 – an exchange Decentralized service under Cosmos.

At that time, the Evmos Foundation published Akash Khosla’s on-chain address, where he owned 34 million EVMOS (4.7 million USD) and was staking more than 11.5 million of these tokens (1.6 million USD), making it the largest authorized wallet address on the network. This founder’s “discharge” action faced opposition from the community, raising concerns about the possibility of price manipulation in the project’s ecosystem.

Chart of EVMOS

The EVMOS token price after the news did not fluctuate much, at the time of writing it was fluctuating around the area of 0.11 – 0.12 USD on the MEXC exchange.

1D chart of the EVMOS/USDT trading pair on Tradingview. Photo taken at 03:28 AM on January 10, 2024