Bankless podcaster apologized for spreading FUD about the Lido token


David Hoffman said sorry for what he mistakenly said about Lido Finance during a podcast, which tanked Lido token price by 10% on the same day.

Lido finance provides liquid staking solutions for staked Crypto assets and Ethereum (ETH). This defi platform allows users to stake their crypto assets to receive daily staking rewards. On this platform, there is no minimum amount of tokens that users are allowed to stake. Ldo is a native token on the Lido platform.

On 3 March 2023, During the Bankless Show podcast, the co-founder of the content studio Bankless, David Hoffman said that last week the United States Securities and Exchange Commission (SEC) sent a Wells notice to several crypto companies, including Lido finance.

“Many Wells notices have been issued to many of the DeFi apps. (…) Wells notices have got shot out across the industry in the last week. It has not come to light yet..(…)…I think Lido got one,” Podcaster said.

The information shared by Hoffman was based on some unnamed sources but he blindly named Lido finance.

On the same day, Hoffman admitted the mistake that he made during his podcast. To bring clarity to his statements, Hoffman said that he mistakenly targeted Lido finance on behalf of rumors, which was really a very bad job that he did.

The whole news acted as a catalyst to dump the price of LDO tokens by approximately 18% within the last 3 days, as data on the cointracting website Coinmarketcap is showing.

Bankless podcaster apologized for spreading FUD about the Lido token 1

Earlier a similar kind of rumour surfaced in the crypto sector, where a few people were claiming that the USDC stablecoin issuer received Wells notice from the SEC agency, just after BUSD issuer Paxos.

Read also: ByBit exchange seeks alternative solution amid banking service outages from partner