Woofun AI reports that Cap founder Benjamin clarified the Stabledrop controversy, admitting the initial 11 million token promise was overly optimistic due to insufficient funding and an underperforming ICO. Consequently, only 4.2 million Stabledrops are available for distribution.

To ensure full principal protection for early supporters, the team reallocated funds so all YT holders receive their initial investment back without additional profits. Benjamin also addressed concerns regarding large wallets linked to his former company, stating these addresses belong to unrelated former colleagues and follow standard rules. He noted that Cap remains healthy, attributing recent TVL fluctuations to decreased USDM deposits on Aave, which raised borrowing rates and triggered stcUSD withdrawals.