The $ESPORTS token collapsed more than 92% on 25 May, wiping out over $110m in market value after on-chain analysts flagged large token transfers, exchange deposits, and alleged team-linked wallet activity before the crash.
Data shared by multiple on-chain commentators suggested wallets connected to the project moved tens of millions of tokens through fresh addresses before depositing large amounts onto exchanges and selling through decentralized liquidity pools.
The token fell from around $0.69 to nearly $0.05 within a single daily candle, according to TradingView data. Total liquidation has now exceeded $6m, with long liquidations exceeding $5.2m.
Analysts flagged unusual wallet activity before collapse
On-chain analysts claimed roughly $23m worth of $ESPORTS tokens had moved to KuCoin over the past several days before the collapse.
They also alleged tokens moved from team wallets into clusters of fresh addresses before splitting into additional wallets and flowing toward exchanges.
Separately, onchainschool.pro claimed wallets tied to the project distributed large token balances across dozens of addresses before selling through decentralized exchanges.
Another widely shared post from Ash Crypto alleged that connected wallets dumped between 178m and 197m tokens, representing roughly 43% of the token’s circulating supply.
At the time of writing, the project team had not publicly responded to the allegations.
Chart structure showed weakening liquidity conditions
The collapse followed a sharp rally that pushed $ESPORTS from roughly $0.35 in early May to local highs near $0.75 before momentum abruptly reversed.
Despite the price surge, open interest reportedly remained relatively muted.
TradingView data showed $ESPORTS plunging from an open near $0.69 to a close around $0.054, marking a daily decline of roughly 92%. Volume also spiked sharply during the selloff, signaling aggressive liquidation pressure and collapsing buy-side liquidity.
The token’s RSI fell to around 29, entering oversold territory as the breakdown destroyed the previous breakout structure.
Collapse renews scrutiny around token concentration
The incident has renewed attention on token concentration risks across smaller-cap crypto assets, particularly where large wallet holders control substantial portions of circulating supply.
Large unlocks, opaque treasury movements, and low-liquidity market structures have increasingly become major risk factors during volatile market conditions.
While the allegations surrounding insider-linked wallets remain unverified, the scale and speed of the collapse are likely to intensify scrutiny around token transparency and exchange inflow monitoring.
Final Summary
- $ESPORTS plunged more than 92% after on-chain analysts flagged major wallet movements and alleged insider-linked token transfers.
- The collapse erased over $110m in market value and renewed scrutiny around liquidity depth and token concentration risks.