Tokens on the newly launched Arc blockchain by Circle experienced a sharp decline following a livestream event. During a pre-show segment, a guest identified as Panchu Vijay Pal, founder of XyloNet, appeared on camera. Although Pal is not a Circle employee, his appearance triggered a sell-off among traders who reacted to his nationality.
Data from GeckoTerminal indicated that specific launchpad and meme assets were heavily affected. TOLLY dropped by approximately 68%, while ARGUS fell by about 50%. These assets are not issued by Circle, and no official ARC token trading has commenced yet. Launchpads accounted for 82% of the total DEX volume of $410.8 million on the first day.
The Arc mainnet launch featured participation from major financial institutions, including BlackRock, Visa, and Mastercard, which serve as block producers. Despite the presence of these established partners, market participants reacted to the livestream guest by exiting positions. XyloNet, which was highlighted as a partner in June, remains active on the network.
The incident sparked a broader discussion regarding bias in the cryptocurrency market. Industry observers noted that projects from the U.S. or Europe often receive higher credibility compared to those from Asia. Furthermore, reports from Chainalysis for 2026 highlight that major crypto crimes, such as the $1.5 billion Bybit breach, are linked to state-sponsored actors in North Korea.
