On May 25, 2026, the ESPORTS token, which was still fluctuating at high levels, was pressed down with the "power-off button" within 24 hours. According to Foresight News, citing Bitget market data, the highest price during this period was about $0.76, and it dropped to as low as about $0.05, currently hovering around $0.06, with a maximum one-day drop of nearly 92%, appearing almost as a vertical downward line on the chart. Before the price suddenly collapsed, there were already some unsettling signals on the chain – approximately five days before the flash crash, the address 0x7Ef905f806D4C6E60441fD63563E3b05bB5C10dD transferred about 19.9 million ESPORTS to a certain Kraken deposit address, worth about $13.9 million at the time; this deposit address was labeled by analysts from multiple media outlets as "suspected DWF Labs associated address"; at the same time, the funds upstream of 0x7Ef… were linked to the ESPORTS token deployment address, which was observed to continuously and frequently sell ESPORTS. On the day of the flash crash, on-chain analyst Ai Yi further traced the complete path from the deployment address to 0x7Ef… to the Kraken deposit address; this chain of on-chain evidence was subsequently spread by several Chinese media outlets, and the community started to question: aside from the suspected controlled deployment address's selling, if the added pressures from the marked "suspected DWF Labs associated" deposit address are also factored in, was this round of near-zero drop in ESPORTS merely a market stampede, or a chain reaction triggered by various parties coordinating releases?

19.9 Million Transferred to Kraken: A Warning Signal Before the Flash Crash

Tracing back the on-chain evidence upstream, the "key transit address" 0x7Ef905f806D4C6E60441fD63563E3b05bB5C10dD, named by multiple media outlets, does not exist in isolation. According to reports from various Chinese media citing on-chain analyst Ai Yi's conclusions, the upstream funds of 0x7Ef… are directly linked to the ESPORTS token deployment address, which was observed to engage in high-frequency selling of ESPORTS during the same period. In other words, this link can roughly be restored as: funds from the project deployment address flow into 0x7Ef…, and then from 0x7Ef… to a centralized exchange deposit address, forming a complete selling pressure channel extending from the "project side" to the exchange.

What truly stung market sentiment was the enormous transfer that occurred about five days before the flash crash. According to reports from Deep Tide TechFlow, Jinse Finance, and others citing on-chain analyst Ai Yi's findings, around May 20, 2026, the address 0x7Ef… transferred approximately 19.9 million ESPORTS to a Kraken deposit address, worth about $13.9 million at the time; this deposit address was labeled by some on-chain analysts as "suspected associated with DWF Labs." Five days later, on May 25, ESPORTS experienced a price flash crash of over 90% in a single day. This unprecedented large-scale concentrated deposit was afterward viewed as a clear warning by many participants: when an address that has a link to the deployment address pushes tens of millions of tokens out to the exchange within a short timeframe, and the relationship between the project party and the suspected market maker has yet to be publicly clarified, any subsequent significant drop will inevitably be interpreted by the market as "premeditated dumping," rather than a purely accidental price stampede.

High-Frequency Selling by Deployment Address: Are Project Tokens Retreating?

If the approximately 19.9 million ESPORTS pushed to Kraken by 0x7Ef… five days before the flash crash is a heavy blow, then tracing back upstream reveals another unsettling detail – according to several media outlets quoting on-chain analyst Ai Yi's conclusion, the upstream funding source of 0x7Ef… is associated with the ESPORTS token deployment address, which has been observed to frequently and repeatedly sell ESPORTS into the market over a period of time. The specific scale and number of each transaction were not elaborated upon in public reports, but in the eyes of many traders, this "deployment address + high-frequency selling" combination is enough to raise suspicions about whether project tokens are quietly retreating.

In conventional narratives, deployment addresses are often seen as the source of initial project tokens, closely linked to the team's treasury or early distribution arrangements. Therefore, when on-chain paths show a funding link between the deployment address and 0x7Ef…, and 0x7Ef… quickly transfers large tokens into suspected DWF Labs related exchange deposit addresses within a short time, the market naturally pieces together a picture of "the project party or its affiliates continuously offloading in advance." However, all these inferences remain at the level of on-chain signs and community puzzles; as of now, the project entity Yooldo Games has not publicly responded in writing regarding the selling behavior of the deployment address, its relationship with 0x7Ef…, and the decision-making motives behind it, and no authoritative agency has concluded that the project team is directly involved in the sales.

Multi-Signature Address Unlocked Early? The Shadow of Early Token Distribution

As the funding chain between the deployment address and 0x7Ef… is put under a microscope, the on-chain monitoring account @0xInChain has also shifted focus back to an earlier stage. Its single-source analysis suggests that about two months before this flash crash, there were Gnosis Safe multi-signature or whale addresses related to the ESPORTS project that concentrated control of a large number of tokens on-chain, becoming extremely critical early holders of the tokens. Even more controversial, @0xInChain claims that this address may subsequently split part of its tokens, transferring them to Kraken, MEXC, Bitget, and other exchanges, but the scale of this unlocking and the splitting paths currently lack multi-source data cross-validation, and media reports have yet to provide a unified precise figure, so they can only be labeled as clues pending verification, rather than verified evidence.

Even setting aside these on-chain details that are still being verified, the drastic fluctuations of ESPORTS have once again brought an old issue to the forefront: when early tokens are highly concentrated in a few multi-signature or whale addresses, and the unlocking rhythm and circulation arrangements lack transparent disclosure, once core token holders choose to collectively move positions in the secondary market or at exchanges, the market's absorptive capacity is often severely tested in a short period, and the price curve is more easily transformed from a steady correction into a cliff-like decline losing 90% in a single day.

DWF Labs in Controversy Again: Market Makers versus Community Confrontation

Before the flash crash of ESPORTS, DWF Labs had already been questioned multiple times by different project communities for playing a dual role in some tokens as "pushing up first, then selling off," making it almost a sensitive term in market sentiment. In this incident, the only verifiable hard fact on the chain is this: about five days before the flash crash, the address 0x7Ef905f806D4C6E60441fD63563E3b05bB5C10dD transferred approximately 19.9 million ESPORTS to a certain Kraken deposit address, worth around $13.9 million at the time, and this deposit address was marked by several on-chain analysts as "suspected to be related to DWF Labs." As of May 25, 2026, there has been no public statement from DWF Labs, nor a formal announcement from Yooldo Games clarifying whether there is any market-making or other cooperative relationship between the two parties, which means the so-called “DWF market-making dump” theory currently remains at the level of on-chain labels and public speculation.

In the absence of contracts and official disclosures, discussions around DWF quickly divided the ESPORTS community. Some participants believe that introducing an institution like DWF as a market maker can provide order depth and liquidity in early stages, helping the project achieve initial price discovery; while others bind the "suspected association" of the Kraken deposit address with the price performance before and after the flash crash, accusing DWF or similar market makers of concentrating and dumping tokens at critical moments, even using emotional terms like "zeroing dumps" and "rug" to label them as primary culprits. The lack of detailed on-chain breakdown and formal responses from both parties makes it difficult to resolve this divergence regarding "market-making protection versus market-making harvesting" in the short term.

Zeroing Dumps or Risk Resonance: The Boundaries of On-Chain Evidence

Returning to the on-chain evidence, the relatively confirmable anchors we have are actually quite few: first, the ESPORTS deployment address and its upstream associated address were monitored for high-frequency token selling; second, about five days before the flash crash, the address 0x7Ef905f806D4C6E60441fD63563E3b05bB5C10dD transferred approximately 19.9 million ESPORTS to a certain Kraken deposit address, which was marked by multiple parties as "suspected to be related to DWF Labs," and on May 25, 2026, this token fell from a high of about $0.76 to a low of about $0.05 within 24 hours, with a maximum drop of approximately 92%. Beyond this, claims about "Gnosis Safe multi-signature or whale addresses related to the project concentrating control and splitting onto multiple exchanges two months ago" stem from a single on-chain monitoring account and currently lack multi-source cross-validation; whether the project party directly led the sales, the extent to which DWF Labs played a market-making or trading role, and the real scale of the unlocking tokens from multi-signatures remain unresolved because Yooldo Games and DWF Labs have yet to provide publicly supported data statements. The community's use of labels like "zeroing dump" and "rug" for this crash is an emotional reaction to the price result, but at the evidence level, what we can grasp more is the funding path between the deployment address, 0x7Ef…, and the Kraken deposit address suspected to be affiliated with DWF, as well as whether these addresses continue to transfer to exchanges or show signs of return; until more detailed disclosures and verified data from the parties involved emerge, treating verified transfer records separately from the still-to-be-confirmed motives and levels of coordination might be the only reliable starting point for understanding the boundaries of risk resonance in this flash crash event.

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