The real-world asset tokenization project Plume has been hit hard following the tragic death of its co-founder Eugene Shen. Announced in late May 2025, Shen's passing has precipitated a notable sell-off of the PLUME token, which experienced an 18% decline over the week, including a sharp 7.4% drop and a 145% spike in trading volume on the day of the announcement. This reaction has divided the community, with some accusing the project of being a scam or even casting doubt on the authenticity of Shen's death, while others defend Plume's credibility citing its significant backing and market presence.
Shen was instrumental in tokenizing over $4 billion in real-world assets through Plume, demonstrating a strong industry presence. The token’s steep fall appears to reflect shaken investor confidence amid fears about leadership stability and the future of the project. Additionally, the market for real-world asset (RWA) tokenization as a whole faces uncertainty following this unforeseen leadership loss.
Despite the panic and token dumps, historical precedent indicates that well-established crypto projects typically recover market value after founder losses, as new leadership takes over and stability returns. This event underscores not only the emotional impact on PLUME holders but also the heightened skepticism and volatility that can grip the crypto community in response to unexpected crises.