Key Takeaways
- Celestia’s co-founder claims to have $100 million in reserves with a “6+ year runway”.
- A Celestia dev has proposed moving to a Proof-of-governance model.
- TIA is trading at $1.58, down roughly 92.5% from its $20 ATH.
After tumbling more than 90% to an all-time low, the Celestia (TIA) token has relished sturdy gains as the project’s co-founder defends the project against allegations of financial mismanagement and insider token sales.
Celestia FUD
According to Celestia co-founder Mustafa Al-Bassam, the FUD surrounding the project is “getting ridiculous.”
The so-called FUD he refers to are new claims that the firm has poorly handled its financials, with Al-Bassam accused of dumping over $25 million in TIA amongst the accusations.
In addition, top executives are accused of unlocking and selling off their TIA in October 2024. Al-Bassam took to X to defend Celestia. He notes:
“I’ve been in crypto since 2010, and it’s not new to me that you have to have a thick skin and eat gravel to survive.”
Claiming to have more than $100 million in reserves “and a 6+ year runway”, Al-Bassam notes this is enough for Celestia’s “lean” workforce of around 50 employees.
Now, it appears more changes could be on the way, as a fresh proposal from a Celestia community member and developers outlines a thesis for Celestia to test out a Proof-of-Governance (PoG) mechanism.
Token Decline
At its peak in February 2024, TIA briefly traded above $20 with a market cap of over $3 billion.
Since then, the token has tumbled dramatically to an all-time low of $1.39 on June 23. The token’s market cap slipped to $900 million at this time.
That said, the recent bump may just be a result of speculators looking to get in at a historical low.
This was brief, however, as Al-Bassam’s words have provided some reassurance to investors as TIA is now trading up 12.6% at $1.58, officially raising its market cap back up above the $1 billion mark.
Al-Bassam posits that “all tokens have a 95% drawdown at some point in their lifecycle.” It’s a bold generalization that is not applicable or universal across “all” tokens.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
