Celestia, the modular blockchain project behind the TIA token, is currently facing scrutiny following a series of allegations involving insider token sales, paid promotional activity, and internal team controversies.
These claims were widely circulated on X in a thread started by the user “Startup Anthropologist”, and have prompted a response from the project’s leadership, denying the claims.
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Viral Accusations Raise Questions
The thread, published on June 23, accused members of Celestia’s executive team of cashing out significant amounts of TIA tokens shortly after unlocks took place in October 2024. The post alleges that co-founder Mustafa Al-Bassam sold more than $25 million worth of tokens via over-the-counter (OTC) transactions and subsequently moved to Dubai. It also claims that other team members and promoters were paid to promote the token online.
Among other claims, the thread mentions that a former team member, Yaz, was dismissed following accusations of sexual harassment, and that Celestia paid large sums to various media figures and influencers. While some of these allegations were accompanied by screenshots, others remain unverified at the time of writing.
The posts have attracted significant attention within the crypto community and news sources.
Response from Co-Founder Mustafa Al-Bassam
In a post also published on June 23, co-founder Mustafa Al-Bassam addressed the situation, referring to the allegations as “FUD” (fear, uncertainty, doubt). While he did not directly respond to specific claims or posts, Al-Bassam stated that all Celestia founders, early employees, and core engineers remain actively involved in the project.
He also emphasized that the project holds more than $100 million in reserves, enough to fund operations for over six years. According to Al-Bassam, the team remains committed to the project’s long-term goals.
“All Celestia founders, early employees and core engineers are still here and working as hard as we did when Celestia started 5 years ago. (…) We have a $100M+ war chest and a 6+ year runway so we’re ready to play the long game.”
TIA Token Performance
Just two days ago, Celestia’s native token TIA had recently hit an all-time low of $1.32. Though the token has since recovered slightly to around $1.62, it remains more than 90% below its peak price, recorded in early 2024.
This decline follows months of gradual price losses and ongoing criticism of Celestia’s tokenomics and unlock schedule. Observers have noted that insider unlocks in October 2024 gave early contributors access to large portions of their token allocations.
Read also: Celestia (TIA) Struggles – From High Hopes to a 91% Crash
Despite the controversy, TIA saw a short-term price increase of more than 10% following Al-Bassam’s response, likely supported by the announcement of the project’s treasury reserves and broader positive market sentiment. However, broader concerns about investor confidence and governance remain present in community discussions.
