Yooldo Games, the Web3 gaming platform on Linea, has directly blamed an external OTC and market-making partner for the 93% crash of its ESPORTS token on May 25, 2026. An estimated 198 million tokens — roughly 43% of the circulating supply — were sold in a single event, wiping out over $110 million in market capitalization.
In a July 2 statement on X, the team said the collapse was "not initiated, directed, or intended by the ESPORTS team." They revealed that the sell pressure largely originated from tokens previously supplied to one of their market-making partners, which acted contrary to agreed terms. However, full on-chain tracing is difficult due to the movement of funds across multiple wallets, counterparties, and exchanges.
Skepticism from the Community
The explanation drew immediate backlash. Community members labeled it an "outsourcing betrayal" narrative, pointing to on-chain evidence from May 25 that implicated team-linked multisig wallets in the dump. The statement did not directly address those accusations.
Current ESPORTS price stands at $0.02556, down 10.26% in 24 hours. Market cap is $16.17 million, with daily volume of $2.93 million. The monthly chart shows the token remains far below its earlier peak, reflecting sustained selling pressure.
Recovery Plan: Liquidity, Buybacks, and Game Update
Yooldo says it is cooperating with exchanges to investigate further and limit further damage. It has started liquidity support measures and plans to onboard new long-term partners. The team also teased upcoming catalysts: a new game update and additional buyback announcements. Whether these will restore trust among holders remains an open question.
Key factors to watch: confirmation or denial from the named market-making partner; on-chain trace of where the 198 million tokens ended up; timing and size of ESPORTS buybacks; details of the next game update.