Celestia Founder Provides $100 Million Assurance: TIA Price Increased by 11%
Celestia's native token TIA gained over 11% on Tuesday after co-founder Mustafa Al-Bassam confirmed the project's $100 million treasury. This announcement partially restored investor confidence despite growing criticism and rumors about the project.
Al-Bassam stated that these resources would sustain operations for over six years. This assurance came amid increasing discussions of "insider sales" and "early token unlocks" in the community.
Internal Discussions and Sale Allegations on the Agenda
In recent weeks, Celestia has faced various accusations. Some reports suggest that founder Al-Bassam sold more than $25 million in tokens through over-the-counter (OTC) transactions. A user on X claimed that some executives went for early token sales, that the project made hefty payments for impressive marketing activities, and serious ethical issues arose concerning some team members.
Especially Celestia developer Nick White had previously clearly denied these allegations. Still, the discussions raised questions about the project's transparency.
Response from Al-Bassam: "We Continue Our Path Despite FUD"
Mustafa Al-Bassam, while not directly denying all allegations, emphasized the project's strong stance and long-term goals in his statement:
"Despite the absurd FUD rumors, the founding team, engineering team, and initial employees of Celestia are still here. We are working with the same determination as we started five years ago."
While Al-Bassam did not provide a detailed response to the allegations of financial mismanagement, he reminded that over 90% of all crypto projects could lose value over time. He also mentioned that Celestia has a large "war chest" which positions the project for long-term sustainability.
"I have been in crypto since 2010. To survive in this market, you need thick skin and a resilient stomach," he said.
The Market Responded Positively: TIA Price Increased
Despite all the discussions, the initial market response was positive. According to BeInCrypto data, TIA rose over 11%, reaching $1.56 at the time of this writing.
However, analysts believe this recovery may be temporary. Another major token unlock planned for October by Celestia is on investors' minds. This development may create new selling pressure on the price.
According to Foresight News, TIA has decreased by 92% since its peak. This indicates that investors are focusing more on transparency and reliability than long-term sustainability.
Change in Governance Model: Proof-of-Governance Proposal
Finally, the Celestia community is working on a new governance model called Proof-of-Governance as an alternative to the classic Proof-of-Stake (PoS) system. In this model, validators are selected based on governance decisions rather than the amount staked.
The PoG model emerged as a response to the widespread adoption of liquid staking tokens (LST). It aims to restructure economic incentives based on the stake rate. It is claimed that this system can sustain the network's security by reducing unnecessary token issuance.
While some developers describe this approach as the "natural evolution of PoS systems," investors remain cautious.
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