Celestia co-founder Mustafa Al-Bassam claimed that the team remained focused and financially devoted to the storm despite increasing accusations of misconduct, insider-insider and distrust of the community.
“Despite FUD (which is getting more ridiculous in the day), all Celestia founders, previous employees and major engineers are still here and working hard as we did when Celestia started 5 years ago,” Al-Bassam write In a Monday post in X.
Al-Bassam claimed that the major drawdowns of the token are a normal part of the industry. He added that Celestia (Tia) has a strong long -term flexibility, citing a “$ 100m+ war chest and a 6+ year runway.”
The comments follow the growing criticism from tokenholders and independent researchers claiming that the Celestia team and insider loads a large quantity of TIA tokens as retail investors provided a 95% token drawdown.
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Care of income and misconduct
Al-Bassam’s post is likely to come in response to a scathing X thread of the startup anthropologist. The PostAttracting more than 200,000 views, the Celestia team has accused the Celestia team of coordinated financial misconduct.
“All C-suite unlocked in early October 24th … Mustafa sold 25M+ to OTC, moved to Dubai,” the post posts. The thread further claims that well -known figures are paid to promote the TIA token while Employees silently —ofloads the handles.
Another X user, Shrutebuck, criticized the timing of unlocked. “They reward the earrings of early investors and themselves at the cost of retail, then they cried in the timeline about ‘ridiculous -laughs FUD’ when the token drops 98%.”
Criticism also targets Celestia’s token unlock schedule. “Why do you have a token unlock that lasts 3/4 years?” Question Another X user. “I believe in $ eth and a little more … But I don’t believe those who open all my supply for 3 years.”
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The Celestia market approach under investigation
Celestia’s criticism is not new. In May, investor Larry Sukernik described Celestia as a cautionary tale in an attempt to brute-force market traction through narrative and marketing. He argued that appchains and vertical integrations only succeeded the loyal user bases, something that could lack Celestia size.
“The problem is that there are not enough apps with PMF (product-market fit) that have been motivated vertically to include,” wrote Sukernik, pointing to the bad timing in pushing Celestia.
At this time, Al-Bassam responded by saying that Celestia was launched before the rollups became the center of the blockchain scaling, and thus the team did not expect the “industrial rollup complex” that was growing huge.
He defends the relevance of the project, citing more than 30 rollups deployed in Celestia and claims that it controls almost 50% of the data availability (DA) market. “We are really the default solution for the alt-da these days,” he wrote.
Despite this, Sukernik questioned whether Celestia jumped into the DA space prematurely, given the unmistakable demand from the rollups. He noted that while Celestia has a market sharing, it may not be translated into real economic traction.
At the time of publication, Celestia’s Tia traded at $ 1.61, up to 14% on the previous day. However, the token dropped more than 92% compared to all times high $ 20.91, registered in June last year.
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