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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.
LAST CHANCE: Sei Raffle 🎟️
We’ve teamed up with @SeiNetwork to give away 100K $SEI tokens!
5 lucky winners will each receive 5K $SEI tokens, while the remaining 75K $SEI tokens will be distributed among verified raffle participants.
Join now ➡️ https://t.co/pX1sHmaUa4 pic.twitter.com/zO4lYkHOEg
— CoinGecko (@coingecko) August 22, 2023
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.
#SEIscam after 8-9 months hard work, did lots of task in #sei Testnet, gave efforts to project, they said community is 🗝️, But they think community is Fool,
But Now it’s our turn retweet and comment with #seiscam
In crosschain airdrop I got nothing #SeiNetwork we are not fool pic.twitter.com/VvX0xwOtTH
— Crypto Vinu (@CryptoVinu) August 17, 2023
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.
ICYMI: Sei Labs Raises $30M to Build the Fastest Layer 1 🚢
Sei Labs has raised $30 million in two strategic funding rounds from top investors, including Jump, Distributed Global, Multicoin, Asymmetric, Flow Traders, Hypersphere, and Bixin Ventures. pic.twitter.com/SuHFEbGVOM
— Sei 🚢 (@SeiNetwork) April 12, 2023
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.
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.
WTF …🤔🤔🤔
Only 79 sei I thought may be 3000 minimum receiving
Is that 300,000,000sei airdrop ?
Its look like 5M is unique users in the testnet oh come on don’t be scammed us 😭😭
I really hate this..most shit airdrop ever in crypto history 🚽🚽@Sei_FND @SeiNetwork#SeiScam pic.twitter.com/sUP8ck6HxL— mr.meroolai | Suiswap (@MMeroolai) August 16, 2023
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.
Due to fervent demand, Sei Foundation has increased the number of eligible wallets for the cross-bridge airdrop from 500K to 1.5M on @ethereum, @0xPolygonLabs, @arbitrum, @BNBCHAIN, @solana, @optimismFND and @osmosiszone.
— Sei Foundation (@Sei_FND) August 17, 2023
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.
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.
The #SeiScam and overall $SEI saga is tricky.
Participating in Testnets isn’t easy, especially if you’re from 3rd word countries where you have to consider some added costs like data, leaving time aside.
Calling them a scam is a stretch, but they could have done way better.
— Sir Robert (♟,♟) || The Web3 Economist (@TheEwansEffect) August 17, 2023
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.
SEI/USD Two-hour Chart
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.
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.
Knowledge is power in the crypto sphere 👏
Dive deep, learn consistently, and watch your trading strategy soar with #LaunchpadXYZ
Join our #CryptoCommunity today 💪
👉https://t.co/ZUZaIKgy84
#LaunchpadKnows #Crypto #Web3 #Alts pic.twitter.com/UMB953Bl5u— Launchpad.xyz (@launchpadlpx) August 21, 2023
Visit the Launchpad XYZ website here for more details about how to participate in the presale.
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