Aleph Zero, a privacy-focused, scalable blockchain’s token AZERO, crashed to an all-time low today.
The price decline comes amid allegations of mismanagement, a high-profile resignation, and a fractured team at the center of the turmoil.
Why is Behind Aleph Zero’s (AZERO) Collapse?
According to the latest data from BeInCrypto, AZERO’s value fell to $0.035 earlier today. This represented a new all-time low for the token.
Additionally, trading volume declined by 13%, suggesting a loss of investor interest. At the time of writing, the price had recovered slightly to $0.038.
Aleph Zero (AZERO) Price Performance. Source: BeInCrypto
However, this record low is not a sudden drop but the result of a continued downtrend. Over the past month, AZERO has depreciated by 73.7%, wiping out over $30 million in market value.
The declines accelerated late last week when Adam Gągol, co-founder of the Aleph Zero Foundation (AZF), announced his resignation. In a post on X, Gągol cited transparency, leadership, and financial sustainability issues as key factors behind his departure.
According to Gągol, the foundation’s failure to openly communicate with the community and acknowledge internal leadership changes has eroded trust and stalled progress.
“AZF’s consistent lack of it [transparency], I believe, critically damaged the project and is one of the core reasons we must part ways,” the post read.
He also pointed to the unsustainable management of AZF’s treasury and token sales. Gągol claimed that this burdened the project’s growth and community morale.
“Given this impasse, I believe the only viable path to save the core vision is for the team to cut all ties with the Aleph Zero Foundation,” he added.
Moreover, Gągol revealed that he is now leading a breakaway initiative called Common. This independent project builds upon the technological foundation established by Aleph Zero but introduces a renewed vision and leadership approach.
As Cardinal Cryptography’s majority shareholder, he plans to use the firm’s capital reserves to fund Common’s growth.
“To power this new ecosystem and ensure a clean break, we will be introducing a new token,” Gągol highlighted.
In addition, the new token launch will be accompanied by an airdrop for existing AZERO holders. Nevertheless, the distribution will exclude those linked to the foundation.
However, the explanation did little to temper community anger. Dr. Martin Hiesboeck, Head of Research at Uphold, alleged that greed and mismanagement were the root causes of AZERO’s downfall.
“Adam Gagol, Nick Fisher, and Daniel Ozluer seem to have stolen significant funds, and the price has crashed,” Hiesboeck claimed.
Despite this turmoil, Dr. Hiesboeck emphasized that Aleph Zero’s underlying technology remains strong and unrelated to the alleged scandal. He expressed optimism that the project’s technology and blockchain can survive, possibly by being acquired by another party.
“So for the intrepid, this is a chance to buy AZERO on the cheap and wait for the bailout,” he noted.
Meanwhile, another analyst expressed disillusionment with AZERO, calling it one of his ‘biggest mistakes of this cycle.’
“I’m starting to realize all these low caps are just useful for swing trading. It’s not worth it to hold them for the long term “hoping” for that 100x. You should be very aggressive with profit taking for altcoins, and once you sold, never look back,” he stated.
Whether AZERO can emerge from this collapse remains to be seen. The project’s ability to recover hinges on new leadership, potential acquisitions, and restoring investor trust—a tall order given the scale of the current fallout.