Hoffman later retracted the statement in a long tweet and apologized, and the LDO price recovered somewhat, though not to its initial level. However, he continued to claim that "there is at least one confirmed Wells Notice that has gone out recently, that isn't known to the public", but wrote that "the idea of a mass recent carpet bomb isn't correct".
It doesn't take much to tank a token price, particularly lately as fear of SEC action in the Ethereum staking world has run high. Popular podcaster David Hoffman speculated on his Bankless podcast on March 3 that "I have wind that many, many, many Wells notices have been issued to many of the defi apps, orgs that we all know and love" in the last week, describing it as a "carpet bombing" and adding that "I think Lido got one". Although he clarified that they were only rumors, it was enough to spark panic, and the LDO token fell almost 20%, from around $3 down to around $2.45.