The modular blockchain network, Celestia, is facing backlash due to the big drop in its TIA token price, but the blockchain’s co-founder, Mustafa Al-Bassam, has defended the project, saying it’s financially strong with over $100 million and a team that is still fully committed, despite accusations of wrongdoing.
In an X post, he has called the criticism “ridiculous” and said big drops in the TIA token’s value are normal in crypto. He believes Celestia will succeed in the long run. The defense came after investors and researchers accused Celestia’s team of selling large amounts of TIA tokens, causing a 95% price crash that hurt regular investors.
A popular X post by Startup Anthropologist has claimed that the co-founder of the blockchain has sold $25 million worth of tokens, and he has shifted to Dubai. It has also claimed that the team has paid people to promote its TIA tokens.
Another X user, Shrutebuck, has stated that the blockchain team and its early investors have made money, but its regular investors have lost out due to poorly timed token releases.
The blockchain’s plan to release its tokens over three to four years was also criticized by the users. The controversy shows growing distrust in how the blockchain team is managing the project. In May, investor Larry Sukernik criticized Celestia, saying its heavy focus on marketing did not create a loyal user base for its appchains, which are specialized blockchain systems.
He argued that Celestia’s technology does not fully meet the needs of rollups, a type of blockchain scaling solution. However, Celestia’s co-founder, Mustafa Al-Bassam defended the project, saying it powers over 30 rollups and holds about 50% of the data availability market, meaning it’s a key player in supporting blockchain data.
Right now, Celestia’s TIA token is worth $1.58, up by 11% in a day, but it has gone down by 92% from its high of $20.91 from last June. The debate shows that many people don’t trust Celestia’s strategy or how it’s being run, especially as the crypto market faces challenges.
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