Just-Launched Sei Blockchain's New Token Plunges 24% After Airdrop

Aug 17, 2023 at 02:40 pm

Reports inundated the X platform (previously known as Twitter) regarding the dissatisfaction among early adopters due to the meager allocations of the new SEI tokens. This led to a noticeable trend of recipients swiftly offloading their acquired holdings on the market.

What was intended to be an airdrop of tokens to the pioneers of the novel Sei blockchain resulted in a disheartening scenario within the crypto market on Thursday. This was exacerbated by the recipients' apparent decision to rapidly sell their holdings, which coincided with a wave of grievances on the X platform about the limited nature of the allocations. Over the span of 24 hours, the value of the SEI token plummeted by a staggering 24%, as reported by CoinGecko, consequently reducing its market capitalization to approximately $314.8 million.

This outcome proved to be disappointing for certain traders who had envisioned that the overall SEI valuation could potentially approach the $500 million mark.

The Sei Foundation, orchestrator of the token airdrop, took to the X platform on Thursday to announce that it had tripled the count of eligible wallets for the cross-bridge airdrop. This surge in eligible wallets expanded the tally from 500,000 to 1.5 million, encompassing various blockchains such as Ethereum, Polygon, Arbitrum, and Solana. The Foundation cited the escalation as a response to the fervent demand expressed by the community. In response to this announcement, a user swiftly countered on the X platform, emphasizing the importance of allocating more to the project's own users, especially those who had diligently tested the system for months on the Testnet. They also suggested that the project should consider such adjustments before branching out to other blockchain networks.

Read more about

Related News

Sign up for daily crypto news in your inbox

Get crypto analysis, news and updates right to your inbox! Sign up here so you don't miss a single newsletter.