4 hours ago
6
The Limitless Exchange has drawn widespread attention after its LMTS token experienced one of the most dramatic launches in recent DeFi history.
What began as a promising debut with a 200% surge quickly turned chaotic as the token’s price collapsed by more than half within hours.
The sharp swings left traders wondering what really happened behind the scenes of this highly anticipated prediction market project.
A volatile debut that has shocked investors
LMTS went live on October 22, 2025, as the native token of Limitless, a prediction market built on the Base blockchain.
$LMTS IS OFFICIALLY LIVE! Prediction markets are taking over the world, and Limitless is your way in. Buy LMTS on @AerodromeFi → limitless.is/LMTS_Aerodrome CA: 0x9EadbE35F3Ee3bF3e28180070C429298a1b02F93
The project allows users to trade real-world outcomes in a system resembling binary options — an emerging niche in crypto that has gained traction through competitors like Polymarket.
At launch, Limitless’ native token, LMTS, opened near $0.35 and rapidly climbed to around $0.72, reflecting intense demand from early traders and airdrop recipients.
However, within hours, the token lost over 56% of its value, crashing to a low of $0.2164 before stabilising in the $0.30 range at press time.
Source: CoinMarketCapLimitless Exchange accused of offloading its tokens after launch
Critics accused the team of dumping its holdings to take profits, a move that many saw as a betrayal of community trust.
On-chain data showed that wallets linked to the Limitless team had begun selling tokens soon after trading opened.
However, Limitless co-founder CJ Hetherington responded by clarifying that the team’s wallets were participating in concentrated liquidity provision on Aerodrome — a DEX where liquidity can be set within specific price ranges.
According to Hetherington, the wallet in question acted as an on-chain market maker, not a seller seeking profit.
He stated that all team tokens remain locked for 12 months, followed by a 24-month vesting period.
I remind you that team tokens are locked for 12 months followed by a 24 month linear vest. 0xBF3132977d9801506deF8E927c4Ff06E5b0801d1 is the liquidity wallet which is running onchain MM strategy
The Limitless team further claimed that the proceeds from early transactions would be used to buy back LMTS tokens as airdrop recipients exited.
Indeed, on-chain activity later confirmed buybacks at around $0.34, helping stabilise prices after the crash.
Despite this, some scepticism lingered, with industry figures like Wintermute’s Evgeny Gaevoy questioning the transparency of the market-making strategy.
Funding, liquidity, and the Limitless token price
Before the token’s debut, Limitless had raised $10 million in funding to expand its prediction market platform.
The project distributed 25% of its total 1 billion LMTS supply to the team and 24.37% via airdrop, leaving nearly half of all tokens in potentially volatile hands.
Thin liquidity across decentralised exchanges also amplified the price swings.
Currently, LMTS trading remains confined to Aerodrome and Uniswap, with no centralised exchange listings.
This lack of broader market access limits liquidity but shields the token from the immediate sell pressure often seen after listings.
The Limitless token price remains in price discovery mode, fluctuating sharply as traders search for a stable value range.
LMTS price outlook
Despite the early controversy, the Limitless team has announced plans to expand to BNB Chain, sparking community speculation that a Binance listing could follow, though no confirmation has been issued.
The expansion aligns with a reported 25x growth in user activity since August, suggesting growing organic demand.
This grassroots enthusiasm has helped maintain momentum despite fierce competition from larger players like Polymarket, which recently partnered with DraftKings to reach mainstream audiences.
Looking ahead, the future of LMTS hinges on the team’s ability to manage supply pressures and build trust with traders.
Sustained buybacks, the success of the BNB Chain expansion, and any confirmation of a Binance listing could be pivotal for the project’s next phase.
The post Limitless Exchange token, LMTS, soars 200% then plunges: here’s what happened appeared first on Invezz
English (US) ·