DEXE plunged by more than 90%, Ceffu's transfer raises questions about DWG Labs

Summary

DEXE plunged 96.8% to $1.56 in 11 days after hitting a record high of about $49.43. At the same time, Ceffu's large transfer to Binance raised questions about the possible connection of DWG Labs.

DEXE plunged 96.8% in 11 days, having previously hit an all-time high of $49.43. Since July 13, Ceffu has transferred 797,917 DEXEs to Binance through six transactions. On-line analyst Ai Yi traced possible connections to DWG Labs but found no evidence of involvement.

Ceffu's mirror position may explain delayed transfers

Chain analyst Ai Yi reported that DEXE reached an all-time high of $49.432 on July 12 and began to fall the next day. According to the analyst's timeline, the most dramatic decline occurred on July 21, when the token plummeted from $46.93 to $5.648, a one-day drop of as much as 88%. When checking the flow of large amounts on the chain, Ai Yi found that most transfers came from hot wallets on centralized exchanges. Ceffu is the only entity to transfer more than $1 million worth of Dexes outside the exchange, making its activities stand out among other deals reviewed by analysts. According to Ai Yi, since July 13, the crypto hosting platform has transferred 797,917.24 DEXEs to Binance through six transactions. The total value of these tokens was $6.15 million when transferred on the chain, but their value was much higher before the crash.

Ai Yi's analysis focuses on Ceffu's MirrorX service, which allows institutional clients to trade on exchanges while also hosting assets in Ceffu. According to the system described by analysts, DEXE deposited in Ceffu can create matching positions on the exchange, while the corresponding on-chain transfers are settled later. Since transactions can occur before visible transfers on the token chain, Ai Yi believes that these six transfers may not show the time when the relevant positions were first used. If the 797,917 DEXEs had been traded before prices began to fall on July 13, analysts estimate their effective value at the time to be approximately $39.44 million. Ai Yi views this logical chain as a possible explanation rather than evidence that the tokens have been sold before settlement on the chain. The analyst's post did not identify the asset owner, nor did it confirm that all 797,917 DEXEs had been sold, nor did it provide direct evidence linking the transfers to the initial price decline.

Questions about the source of the custody balance remain unresolved

Questions about the source of the custody balance have also not been resolved. After reviewing public project information, Ai Yi found no evidence that the Dexe team had deposited tokens in Ceffu. According to the analyst, most of the project-related supply appears to remain in the vaults of decentralized autonomous organizations and contracts covering team-related lockups.

Falcon association triggers review of DWG Labs

While searching the DEXE official partner list for another possible route to Ceffu, Ai Yi pointed out Falcon Finance. The analyst pointed out that Falcon had supported DEXE as collateral on its platform, and Ceffu was one of the institutions Falcon used for asset custody. Ai Yi also discovered a connection between Falcon Finance and DWG Labs, which also appears separately on Dexe's partner list. Based on these public connections, the analyst believes that the tokens held by Ceffu may involve DWG Labs, Falcon, the project team or other market makers.

Ai Yi's post did not provide any evidence to prove that the DWG Labs, Falcon Finance, Ceffu or DEXE teams caused the crash. The analyst described the conclusion as a preliminary assessment based on on-chain flows and tracking open associations, and left room for alternative interpretation for the transfers. Neither the transfer data nor the partnerships cited, it is possible to determine who controls the DEXE positions represented through MirrorX. Ai Yi also did not rule out the possibility of participation by the project party or other market makers, but the post did not give a conclusion on the party responsible for the sell-off.

There were two token sell-offs before the DEXE crash

The DEXE crash followed two other recent reported large coin sales. On July 3, LAB fell more than 60% from a high near $20 on June 27 to an intraday low of $7.50 as concerns about insider holding, token transparency and derivatives clearing triggered panic selling. According to reports, LAB's decline came after a community review of allegations by chain investigator ZachXBT, who claimed insiders controlled more than 95% of its supply. ZachXBT also raised concerns about private over-the-counter trading agreements, changing unlocking schedules and insider wallet movements, although these public allegations have not yet been confirmed in court and the LAB team has publicly denied or rejected many of the allegations.

Humanity Protocol's H token suffered another violent crash on June 9, losing more than 80% of its value after attackers stole wallets associated with the project. Unlike the unsolved mystery of Dexe transfers, the Humanity Protocol team confirmed that the attacker breached private keys belonging to members of the Humanity Foundation. Humanity Protocol operates an identity network based on zero-knowledge Ethereum virtual machines and uses palm biometrics and zero-knowledge certificates to authenticate unique users. The project said it was designed to allow identity checks without putting users 'complete personal information into a large centralized database.