Across Protocol’s ACX token is in the middle of a deep bloodbath after allegations of governance manipulation and insider trading. These unsubstantiated but recently-reported allegations are supposedly connected to some of the primary movers and shakers behind the project’s decentralized autonomous organization (DAO). The controversy has led to a sharp decline in the token's value, shaking investor confidence and raising questions about the integrity of the project's governance.
ACX token was down 10% on Friday, closing at $0.1342. Retrospectively, over the past month the token has tanked over 40%. At present, the ACX token is 91% trading below its ATH of $1.69, which it hit in December of 2024.
Allegations of Governance Manipulation
Yet project lead Kevin Chan and Coin Center CEO Hart Lambur are very much at the center of that controversy. They are further charged with having schemed to propose two intentionally opaque amendments that would have served their for-profit vendor Risk Labs. Further, these proposals included the transfer of a significant amount of ACX tokens to onboard Community Treasury governance through separate governance votes.
The initial on-chain vote, conducted in October 2023, approved the release of 100 million ACX tokens disguised as future development assistance. A later vote in October 2024 funded another 50 million ACX tokens as “retroactive funding.” Critics say that insider-controlled wallets played a major role in these votes. This pushed deep concerns over the transparency and fairness of the DAO’s decision-making process into the spotlight. Together, these proposals moved 150 million ACX tokens — worth about $23 million at current prices — into the new project.
Response from Across Protocol
Co-founder Hart Lambur responded to the charges publicly on the record, calling them without merit. He even went on social media to personally discuss the DAO’s decisions and team actions.
Risk Labs was granted ACX tokens from the DAO to build the Across protocol. This is standard practice for DAOs. - Hart Lambur
The team has stated that the tokens in question would not be sold for at least two years, aiming to reassure the community about their long-term commitment to the project. Even with these reassurances, the market response has been grim, a sure sign of an investor confidence crisis.
Technical Analysis and Market Outlook
Technical indicators point to continued downside for the ACX token. The token is trading well below critical support levels at the moment, indicating further downside is likely. The relative strength index (RSI) is at 31.27 and falling. This price movement would indicate that the token is approaching oversold territory.
As the price hovers near a breakdown point, analysts are especially focusing on the $0.13 support zone, cautioning that a breach of this level might spark additional sell-offs. The bad news torrent is overwhelming the technical news with bearish signals coming out technically. Together, they paint a very concerning picture for the short-term prospects of the ACX token.
