Celestia Announces $100M Treasury as TIA Surges Despite Internal Scandal
The native token of modular blockchain project Celestia (TIA) has unexpectedly surged more than 11% on June 18, despite a series of allegations related to internal dumping, token unlocking disputes, and personnel conflicts. The main driver behind the TIA price surge appears to have come from a direct response from Celestia co-founder Mustafa Al-Bassam, who confirmed that the project now has a treasury of more than $100 million, enough to sustain operations for over six years.
Celestia Faces Fierce Criticism From the Community
The accusations against Celestia erupted after it emerged that Mustafa Al-Bassam had sold around $25 million worth of TIA via an OTC (over-the-counter) transaction. Meanwhile, there have been reports that founding team members unlocked their tokens ahead of schedule and began selling them off in October last year. Among them, former head of development Yaz was reportedly fired for misconduct, while lower-level staff have also been accused of market manipulation.
In the face of mounting criticism, many in the community have accused the project of lacking transparency in its internal governance. Some have even called Celestia an “internal theater,” where founders manipulate token prices for their own gain before exiting.
Al-Bassam: “Large Treasury and Long-Term Commitment”
Responding to the controversy, Mustafa Al-Bassam did not directly deny the specific allegations, but asserted that the founding team and core engineers are still working as they did when Celestia first started. He said the network currently has over $100 million in its treasury, a figure that is enough to sustain operations for over six years, even in difficult market conditions.
Al-Bassam also highlighted his long-standing experience in the crypto industry since 2010, asserting that volatility, accusations, and token price drops are “nothing new” and that product makers need to have “thick skin and fortitude” to survive.
TIA surges despite FUD
Despite the volatile investor sentiment, TIA still recorded double-digit gains in Tuesday’s trading session, reaching around $1.56, a surprising reversal from the internal scandals that have surrounded it. Many traders believe that the confirmation of a large treasury and a long-term commitment from the development team have helped bolster market confidence in the short term.
However, many experts warn that this recovery may just be a “dead cat bounce” before continuing the downtrend. According to statistics, TIA is now down more than 92% from its peak, raising concerns about the sustainability of the increase.
Celestia Tests New Governance Model
In parallel with efforts to reassure the community, Celestia is considering a new proposal to test the Proof-of-Governance (PoG) model. This mechanism focuses on governance rights instead of staking, allowing the community to choose validators based on trust, instead of depending on the number of staked tokens.
The PoG model is expected to solve the problems that traditional staking faces, such as the phenomenon of excess token issuance and individuals/groups manipulating network power through large stakes. Some community members support this direction, arguing that this is the right step to increase transparency and protect fairness in the ecosystem.
Conclusion: Celestia is on the Brink of Growth and a Confidence Crisis
While there are still many unanswered questions, the positive market reaction suggests that Celestia is still in the investor’s mind, at least in the short term. Its large treasury, veteran team, and governance innovations are helping Celestia maintain its position amid the media storm.
However, the project will need more than a Twitter response to fully regain the trust of the community. A clear unlock schedule, token distribution, and more transparent governance standards will be required if Celestia is to continue its growth momentum in an increasingly wary market.