Celestia Co-Founder Defends Project as Token Nosedives 95%
The post Celestia Co-Founder Defends Project as Token Nosedives 95% appeared on BitcoinEthereumNews.com. Celestia’s native token TIA is trading around $1.5, roughly 92–95% below its 2024 peak near $20–21. This steep decline has sparked a wave of criticism on social media over Celestia’s tokenomics and price performance. In a post on X, co-founder Mustafa Al-Bassam pushed back against the uproar, noting that all Celestia founders and core engineers remain committed to the project. He highlighted that Celestia holds over $100 million in reserves and has more than a six-year financial runway. Al-Bassam described the accusations as “FUD” (fear, uncertainty, doubt) and argued that deep drawdowns are common in crypto. Source: X His comments followed community outcry over token unlocks and alleged insider sales, and a brief 11% price rally after his statements. Investors and observers have grown restless with Celestia’s performance. Launched on Oct. 31, 2023 via a large airdrop, TIA began around $2.30 and then rallied to over $21 in early 2024. But by June 2025 it had slid to near $1.3–$1.6. In June 2025 the token hit a new low of about $1.32 before a tentative bounce. Early supporters point to several factors. Investor Larry Sukernik warned in May that Celestia might have mis-timed its launch, noting the network went live before rollups and modular tech became mainstream. He argued that without a strong pipeline of “product-market fit” apps, Celestia was relying heavily on narrative and marketing for traction. Many community members have also questioned Celestia’s vesting and inflation. Under its tokenomics, early teams and investors unlock 33% of their allocation after one year, with the remaining share trickling out over the next two to four years. Critics on X noted that this prolonged schedule could allow insiders to exit at price peaks. One user, “Shrutebuck,” complained that the team and early investors “rewarded themselves at the expense of retail,” and…
The post Celestia Co-Founder Defends Project as Token Nosedives 95% appeared on BitcoinEthereumNews.com.
Celestia’s native token TIA is trading around $1.5, roughly 92–95% below its 2024 peak near $20–21. This steep decline has sparked a wave of criticism on social media over Celestia’s tokenomics and price performance. In a post on X, co-founder Mustafa Al-Bassam pushed back against the uproar, noting that all Celestia founders and core engineers remain committed to the project. He highlighted that Celestia holds over $100 million in reserves and has more than a six-year financial runway. Al-Bassam described the accusations as “FUD” (fear, uncertainty, doubt) and argued that deep drawdowns are common in crypto. Source: X His comments followed community outcry over token unlocks and alleged insider sales, and a brief 11% price rally after his statements. Investors and observers have grown restless with Celestia’s performance. Launched on Oct. 31, 2023 via a large airdrop, TIA began around $2.30 and then rallied to over $21 in early 2024. But by June 2025 it had slid to near $1.3–$1.6. In June 2025 the token hit a new low of about $1.32 before a tentative bounce. Early supporters point to several factors. Investor Larry Sukernik warned in May that Celestia might have mis-timed its launch, noting the network went live before rollups and modular tech became mainstream. He argued that without a strong pipeline of “product-market fit” apps, Celestia was relying heavily on narrative and marketing for traction. Many community members have also questioned Celestia’s vesting and inflation. Under its tokenomics, early teams and investors unlock 33% of their allocation after one year, with the remaining share trickling out over the next two to four years. Critics on X noted that this prolonged schedule could allow insiders to exit at price peaks. One user, “Shrutebuck,” complained that the team and early investors “rewarded themselves at the expense of retail,” and…
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