tl;dr
The prediction market project Limitless (LMTS) faced a 58% price drop post-launch, sparking debates over market manipulation, liquidity risks, and transparency after team wallets sold tokens immediately and liquidity pools collapsed.
**Limitless Token Plummets 58% Amid Team Sales and Liquidity Concerns**
The emerging prediction market project Limitless (LMTS) experienced a dramatic 58% crash in its token price following its launch, sparking debates about market manipulation, liquidity risks, and the project’s transparency. The token, which debuted on October 22, saw its value plummet to a local low of $0.20 within hours, despite initial optimism surrounding its $10 million funding round and innovative approach to decentralized prediction markets.
### A Turbulent Launch and Sudden Drop
Limitless, built on the Base blockchain, aimed to capitalize on the growing demand for prediction markets by offering a streamlined platform for micro-betting on short-term price movements. However, the project’s Token Generation Event (TGE) and a highly anticipated airdrop failed to translate into sustained investor confidence. On-chain data revealed that team wallets began depositing and trading LMTS tokens immediately after launch, triggering an immediate price decline.
The token opened at around $0.35 but dropped sharply, reaching $0.20 before recovering slightly to the $0.30 range. The crash occurred just days after Limitless secured $10 million in funding, which it intended to use to expand its presence in the prediction market space. The project also allocated unlocked LMTS tokens as part of its TGE, a move that some critics argue exacerbated the volatility.
### Team Actions and Liquidity Controversies
Limitless founder claimed that all team-held tokens were locked for 12 months, with a vesting schedule over two years. However, a specific wallet containing unlocked LMTS tokens became a focal point of scrutiny. The wallet, which the team described as providing “concentrated liquidity,” was accused of selling tokens to stabilize the price, a move that instead triggered the initial plunge.
The project’s involvement in Aerodrome Slipstream, a decentralized exchange (DEX) that allows liquidity providers to target specific price ranges, further complicated the situation. While the team argued that this strategy aimed to maintain price stability, critics pointed to the thin liquidity of LMTS—$1.4 million in total—as a vulnerability. The concentrated liquidity pool held $5.7 million in LMTS, while the base stablecoin had only $4.2 million in available liquidity, creating an imbalance that amplified price swings.
### Feuds and Market Skepticism
The controversy deepened when Limitless’s team clashed with Evgeny Gaevoy, founder of Wintermute, who questioned the project’s claims of using an “on-chain market maker” strategy. Gaevoy and others accused the team of early selling to lock in profits, a charge the project denied. While the team later resumed buying back LMTS tokens—reacquiring $461,000 worth amid $1 million in net gains—volatility persisted, driven by other whales and retail sellers.
Retail users and influencers who received significant airdrops also raised concerns about potential selling pressure. The lack of centralized listings and the token’s reliance on thin liquidity on DEXs like Aerodrome and Uniswap further limited its price discovery.
### Looking Ahead: Uncertainty and Lessons Learned
Despite the turmoil, Limitless continues to position itself as a player in the prediction market space, leveraging the Base blockchain’s scalability and the rising trend of micro-betting. However, the LMTS crash underscores the risks of underdeveloped liquidity strategies and the challenges of balancing team incentives with retail investor trust.
As the project navigates these hurdles, the broader crypto community remains watchful. For Limitless, the path forward will depend on its ability to restore confidence, address liquidity concerns, and demonstrate a sustainable model for decentralized prediction markets. In the meantime, the LMTS saga serves as a cautionary tale for projects venturing into the volatile world of tokenized markets.