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Trading-focused blockchain Sei’s latest SEI token launch did not go over as well as expected after being plagued with delays and problems with the token giveaway.
SEI Token Drama
The newly launched Sei blockchain Sei generated quite a buzz in the crypto space as its SEI token hit the market with a resounding start, quickly amassing a market capitalization of over $400 million within the first day of trading. Despite the promising start, a wave of discontent emerged on social media platforms regarding the much-anticipated airdrop of SEI tokens to early users and community members.
Airdrops have become a common tactic for attracting users and bootstrapping liquidity, but they often encounter operational and legal complications. The SEI airdrop was no exception, facing issues such as difficulties in claiming tokens and uncertainties surrounding eligibility criteria.
Sei Labs intended to incentivize users from established platforms like Ethereum, Solana, and Binance Smart Chain to migrate by offering SEI tokens upon "bridging" assets.
Trading activity for SEI surged, with a staggering $1.6 billion in trading volume over the next 24 hours. Leading exchanges like Coinbase, Binance, and Kraken all joined the fray, listing SEI in conjunction with the blockchain's debut.
The situation led to confusion and frustration, as the initial announcement about the airdrop's launch did not align with the actual claim process. Early SEI adopters experienced delays, with some users unable to claim the promised tokens at the network's launch.
The company behind the blockchain, Sei Labs, attempted to clarify the situation through an X post, mentioning that "airdrop rewards will be claimable following an initial warmup period," yet failing to provide a specific timeline. Only after the airdrop claim process had already been criticized by some as a "fiasco" did the functionality eventually open to users, underscoring the complexities inherent in crypto airdrops.
Sei's mainnet launch coincided with the announcement of an airdrop of the SEI token. In response to airdrop-related concerns, a spokesperson from the Sei Foundation explained that the airdrop was never officially tied to the mainnet launch and would be executed according to the Foundation's timeline. Despite community frustration, the Foundation encouraged patience and emphasized the need for partners and validators to ensure a smooth experience for Sei's mainnet beta launch.
The Sei Foundation addressed issues with its official Discord server, limiting channels to combat spam and fraudulent links arising from the excitement around the mainnet beta launch. Sei Labs allocated 40% of the circulating SEI supply to its team and private investors, while 48% is designated for ecosystem reserves, including the airdrop and other incentives. The remainder of the supply is divided between the SEI Foundation (9%) and Binance launchpool incentives (3%).
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.