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SEI Loses Momentum After 3% Advance

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SEI fell about 2% over the last 24 hours after the Layer 1 token had jumped 3% during late New York trading on Tuesday

The sudden spike was driven by a campaign by Coingecko, which teamed up with SEI Network in a 100,000 $SEI token giveaway. 

Many view this as a way of winning investor confidence after a disappointing airdrop which led investors to believe that it was a scam. Early supporters are worried, causing recipients to quickly sell the tokens, leading to debates about the project’s goals. 

What is SEI

Sei Network is a Layer 1 blockchain built on Cosmos SDK, which aims to offer faster transaction speed than similar networks such as Solana

The project raised $30 million from Jump Crypto, Multicoin Capital, and Flow Traders in a strategic funding round in April, valuing the crypto project at $800 million.

The token was listed on leading exchanges such as  Binance, Bybit, Huobi, and Kraken listed the token on August 15. Most recently, SEI was listed on Coinbase, the largest US-based crypto trading platform. 

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On August 17, the SEI token airdrop to early adopters of the blockchain turned into a disappointing event in the crypto market with recipients rushing to dump their holdings, triggering a wave of criticism on X, formerly Twitter, due to insufficient token allocations.

According to Sei’s announcement, 300 million tokens were to be airdropped to Testnet users. It is important to note that approximately 500,000 Testnet users were in existence. Assuming all received the airdrop, it logically suggests that around 600 SEI should have been distributed to each user. 

However, users were granted a maximum of 110 SEI tokens during this airdrop, leaving many investors wondering where the rest of the tokens were.

The Foundation clarified that fervent market demand caused it to extend the scope of eligible wallets for the airdrop. A notable expansion ensued, encompassing a substantial increase from 500,000 to an impressive 1.5 million wallets, reducing the amount of tokens dropped to each wallet.

This expansion includes popular blockchain networks like Ethereum, Polygon, Arbitrum, BNB Chain, Solana, Optimism, and Osmosis. The goal was to involve a broader user base and integrate them into the Sei ecosystem.

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In addition, members of the SEI community who believed in the coin’s potential came forth to defend the token. One X user going by the name Sir Robert said that the situation surrounding the #SeiScam and the broader $SEI narrative is complex and nuanced. 

He explained to his over 29,000 followers that engaging with Testnets can be challenging, especially for individuals from third-world countries. This is due to additional factors like data costs and time commitments.

While labeling the entire situation as a scam might be far-fetched, there is room for concern regarding how things were handled, he said. The project could have taken more effective measures to ensure a smoother experience for participants.

SEI Price Analysis

According to the four-hour chart on TradingView, the newly launched SEI token initially saw gains within the first few hours of listing on Binance. But following the mainnet launch and airdrop announcement, the coin experienced a substantial drop, plummeting over 95%.

After briefly spiking to $0.2823, the coin’s value decreased by almost half, settling at $0.1549. The price has been oscillating between two key levels, with the $0.1425 level providing support and resistance being found at the $0.160 psychological level. 

Although there was a slight recovery on Tuesday, pressure from the 100 Simple Moving Average (SMA) at $0.1511 frustrated these recovery efforts.

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SEI/USD Two-hour Chart

TradingView Chart: SEI/USD

Concerning signs for the project also are evident on the two-hour chart, potentially impacting its future price momentum. The Relative Strength Index (RSI) is facing downward at 48. This adds credence to SEI’s grim outlook.

SEI Alternatives

As SEI continues to face legitimacy concerns, investors could look into new cryptos in presale to diversify their portfolios. 

One of the most popular options is Launchpad XYZ (LPX), which has already raised $1.37 million. The presale has a $1.55 million goal, meaning time is running out for interested investors.

The LPX token’s price during presale is $0.0445, and it can be bought in exchange for ETH, USDT, BNB, or via card.

How to buy Launchpad XYZ

Launchpad XYZ platform, which aims to provide developers with everything they need to become winners in Web3. It offers an easy-to-use community-driven ecosystem to ensure everyone will make the most of the next bull run.

Visit the Launchpad XYZ website here for more details about how to participate in the presale.

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