Circle's Arc Blockchain Tokens Drop After Trader Exit Linked to Indian Developer Appearance
Tokens on Circle’s new blockchain, Arc, dropped sharply after traders exited following the appearance of an Indian developer in a pre-show segment during the mainnet launch. Panchu Vijay Pal, founder of XyloNet—a third-party stablecoin exchange—was featured but had no direct connection to the tokens that fell. The decline affected meme and launchpad assets rather than official Circle-issued tokens. The event sparked discussions about racial bias in crypto markets after traders on social media dehumanized Indians as a group, prompting backlash from industry figures who highlighted Indian-born leaders at major tech firms. Despite this controversy, XyloNet launched successfully on Arc mainnet regardless of the token sell-off. Data shows TOLLY and ARGUS tokens fell by 68% and 50%, respectively, within hours after Pal’s appearance. The incident highlights how speculative trading in crypto can be influenced more by perception than fundamentals.
Topics: blockchain launch reactions crypto market sentiment racism in crypto