Tia, a native token for Celestia, surged over 11% on Tuesday, bucking a storm of community criticism for insider sales, early token unlocking and internal controversy.
The rally follows a direct response from co-founder Mustafa Al-Bassam, who confirmed that Celestia has more than $100 million in reserves and has confirmed it is sufficient to fund its operations for more than six years.
Celestia is on fire in response to unlock timeline and insider sales bills
Reports show that co-founder Mustafa al-Bassam sold more than $25 million in tokens via commercial token (OTC) transactions.
“Mustafa desperately dumped a $25 million OTC and stolen money to escape to Dubai and throw a low Andy.
The news came alongside an unlock report that would allow the project’s executive team to fully access to token allocations. Crypto commentator Ab Kuai claimed that the top executive had completely unlocked it in October last year and sold the TIA. Analysts also claim that by the end of the month, low-level members unlocked the TIA early.
In particular, some Celestia builders, including Nick White, have denied these claims in the past. Nevertheless, Celestia reportedly paid a large sum of money to an English-speaking influencer for Sil, along with allegations that the previous developer relations leadyaz was denied due to sexual harassment.
Celestia’s Al-Bassam responded, and although he did not directly deny the allegations, he reasserted the team’s resilience and long-term focus.
“Despite FUD (which is ridiculous for the day), all Celestia founders, early employees and core engineers are still here and working as hard as they did when Celestia started five years ago,” he writes.
He’s not crying at the casino, says Al Bassam
Al-Bassam avoided details regarding financial mismanagement and early sales accusations. Celestia executives explained that all tokens have a drawdown of 95% at some point in their lifecycle.
“I’ve been at Crypto since 2010, and it’s nothing new to me that you have thick skin and have to eat gravel to survive,” explained Al-Bassam.
Crypto executives revealed more than $100 million war chest chest along with a runway that lasted over six years.
His tone resonated with previous emotions since May, when many founders dealt with the fear they felt during the market slump.
“Many founders these days aren’t tweeting because prices are falling and they’re scared of token holder fury hordes and so on. It’s not true of cries at casinos or insiders.
Markets shrugged as TIA prices rise double digits
Despite the controversy, Tia posts double-digit profits, suggesting that traders are ecstatic at accusations or bets against Celestia’s long-term vision.
The confirmed $100 million Treasury Department and Extended Runways eased immediate fear, even with questions about insider behavior and governance remaining.
Beincrypto data shows that TIA has grown by more than 11% on the news, trading at $1.56 at the time of this writing.
Still, investor scrutiny is unlikely to disappear on the horizon with the unlock in October. Will Celestia maintain momentum? This is probably not the case, especially for Altcoins, in the market cautious sentiment.
The rally proves the bouncing of a dead cat and is presented as a temporary recovery in the price of reduced assets, followed by a continuation of the downtrend. This assumption is likely because investors’ sentiment will likely be less dependent on war chests and more likely to depend on transparency.
“The TIA calculated from the peak is currently down 92%,” said an analyst at Foresight News.
Recent proposals show the Celestia community’s plans to experiment with a Proof of Government (POG) mechanism. The proposal arises despite allegations from investors in lockup stake damping, but some users praise the developer’s efforts.
The POG model is where governance, not stakes, chooses the verification device. They proposed it as the logical end of liquid staking token (LST) evolution, redefine the economic security of POS (proof) systems, eliminating unnecessary issuance while maintaining validator incentives.
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