DEGO AMA RECAP on June 9: Talk with the Community. Build the Future.
Introduction:
Thank you for joining our AMA session on June 9th.
We sincerely appreciate your continued support and are grateful to our entire community.
During the session, we selected a number of thoughtful questions submitted by the community. One of our core team members provided detailed and insightful responses to each of them.
Questions and Answers:
Let’s go over the recap of the recent AMA session. The key details are outlined below.
Q1: On June 4, the price of DEGO suddenly dropped by 50% within an hour. On-chain data shows that around 277,999 DEGO were transferred to centralized exchanges shortly before the crash. This led to panic selling and mass liquidation of long positions. Many in the community were affected and are now wondering — who triggered this event?
Was it a team wallet? Was there a vesting unlock? We hope the team can clarify this directly. Who exactly sold it?
A: We appreciate your patience and trust during this turbulent moment.
Here’s what we’ve confirmed from our investigation:
- The DEGO tokens that were transferred to exchanges came from whale wallets, not team or advisor wallets.
- No team, advisor, or multisig wallet sold any DEGO during this period.
- No vesting unlocks or internal token movements occurred — all vesting schedules remain unchanged.
- Our own team holdings were also impacted by the crash, and we incurred losses just like many community members.
To help stabilize the ecosystem and rebuild trust, we are also launching a USD1 liquidity pool, aimed at improving market depth and reducing future volatility risks.
This event was painful, but we are here to stay — building alongside the community as always.
Q2: Was there a vesting unlock or internal token movement?
A: No, there was no scheduled vesting unlock or any internal token sale during this period. All vesting timelines remain as publicly disclosed, and no changes have been made. If there were any internal movements — such as multisig rotation, contract upgrades, or staking-related transactions — these will be clearly communicated to the community along with proper on-chain proof. We’re committed to full transparency in operational matters, and any significant activity will always be clarified proactively.
It’s also important to highlight that in the past, all token-related operations — including allocations, burns, and migrations — have been conducted with public input through community voting. This principle of community governance remains at the core of our decision-making process.
For example, you can check these community-approved initiatives:
- Proposal on Transfer Tax Adjustment (Sept 2022):
https://twitter.com/dego_finance/status/1570662004603645952 - Proposal on Transfer Tax Adjustment (Dec 2023): https://twitter.com/dego_finance/status/1738195078936772853
We act with our community — not behind it.
Q3: If fundamentals remain unchanged, why did the market react so sharply?
A: The recent volatility appears to have been triggered by one or a few large holders engaging in significant selling activity. There has been no negative news, no change in the project’s fundamentals, and no internal or external trigger that would justify such a sudden price movement. In thin liquidity conditions, large sell-offs can cause disproportionately sharp price drops, creating panic and FUD (fear, uncertainty, doubt). These movements are often technical in nature rather than reflective of the project’s actual value or trajectory.
Q4: Were any key partnerships affected by this incident?
A: Absolutely not. All existing partnerships remain intact, and no collaborations or joint initiatives were impacted by recent events. In fact, we’ve proactively reached out to our partners to provide clarity and reaffirm our shared commitment to ongoing work. Our ecosystem relationships are built on long-term value and mutual trust — and we will continue to prioritize open communication and strategic alignment.
Q5: What was discussed with exchanges during this period?
A: Our team maintained direct communication with our listing partners to provide full context on the market movements and reaffirm the project’s stability and direction. All centralized exchange listings are secure — there are no delisting concerns. Liquidity pools remain stable, and operations continue as normal. We are thankful for the continued support of our exchange partners and remain aligned on delivering a reliable trading environment for our users.
Q6: Did any team or advisor wallets sell during this drop? Can DEGO prove it?
A: No, there were no sales from team or advisor wallets during this period. To ensure transparency and maintain community trust, we are preparing to release a public proof-of-holdings snapshot from our multisig wallets and relevant core contributor addresses. This will confirm that no internal party contributed to the price drop. We remain fully committed to the project’s vision and long-term success.
Q7: Will this situation cause any delays to staking, utilities, or product releases?
A: Not at all. All product developments, staking features, and upcoming utilities are progressing according to schedule. We remain laser-focused on delivering the roadmap milestones as planned. The recent market movement does not impact our operations, development pace, or ecosystem goals. Our builders are building — and nothing changes that.
Q8: Is this a one-off, or should the community expect more volatility ahead?
A: From our analysis, this appears to be an isolated event driven by large-holder behavior rather than systemic issues. While crypto markets are inherently volatile — especially in low-liquidity moments — we believe this was a temporary disruption. The long-term health of the DEGO ecosystem remains strong, and we are working to further stabilize the environment by improving liquidity depth and enhancing community education around market dynamics.
Q9: DefusionAI seems to be the most invested product by the DEGO team recently. Can you share more about it?
A: Yes, Defusion is one of the core products developed under the DEGO ecosystem. We’re excited to see it grow and are committed to delivering the best tools for creators.
Here are some recent highlights from Defusion:
- Chains Supported: 12
- Images Generated: 3,615,214
- Registered Users: 113,681
- Transactions: 1,106,885
- Social Media Reach: 128,000+
Defusion empowers users to generate, mint, and share AI-powered NFTs across multiple blockchains — it’s a creative playground for Web3 artists.
To explore more, visit: https://defusion.ai/discover
Q10: DEGO recently announced plans to support liquidity at USD1. Can you share more details?
A: Yes, we will share a full update very soon. Our aim is to improve market access and trading stability for DEGO holders. This new liquidity structure will be based around a USD1 price point, offering more predictable entry and exit for users, and supporting long-term price resilience. Stay tuned for the official announcement with complete details.
About Dego Finance
DEGO Finance stands as a pioneering incubator in the realm of Web3 innovations. We are actively incubating a diverse array of projects across multiple chains, including Depin, Desci, and GameFi. Additionally, we collaborate closely with our partners to forge new paths forward.
