The early L1 project, Syscoin, is expected to undergo a leadership change in the coming days due to mismanagement and a lack of financial transparency, according to several people familiar with the matter. Key members of the Syscoin Foundation, a non-profit organisation that aims to further develop the project, plan to resign and form a new entity, Syscoin Red. According to people familiar with the matter, an internal dispute over the allocation of funds between the foundation and SYS Labs, another for-profit entity, has broken out, leading to a sense of disenchantment within the foundation. Willy Ko, a board member and treasurer of the foundation, said the new entity was designed to restore transparency and trust in the Syscoin community and clearly define who controls project funding. "The foundation's treasury wallet is not a multi-signature wallet and SYS Labs CEO Jagdeep Sidhu has sole control," said Mr. Ko. "I am concerned about the lack of transparency in the use of foundation funds." At its peak in January 2022, the total market capitalization of the project's native token SYS was around $775.30 million. According to CoinGecko, this figure has dropped to just under $80 million. (Decrypt)