The SEI token of the buzzy blockchain project experienced a rush of trading as it debuted on numerous crypto exchanges, but there was great misunderstanding about the status of a promised token "airdrop" to network early adopters.Sei, a new trading-focused blockchain funded by Jump Crypto and Multicoin Capital, went live on Tuesday, sparking a flurry …
The SEI token of the buzzy blockchain project experienced a rush of trading as it debuted on numerous crypto exchanges, but there was great misunderstanding about the status of a promised token “airdrop” to network early adopters.
Sei, a new trading-focused blockchain funded by Jump Crypto and Multicoin Capital, went live on Tuesday, sparking a flurry of trading for the project’s newly released SEI token and driving the project’s first-day market valuation to more than $400 million.
According to CoinMarketCap, trade activity for SEI has surpassed $1.6 billion in the last 24 hours, with major crypto trading platforms such as Coinbase, Binance, and Kraken all listing SEI in parallel with the network’s debut.
However, people on X (previously Twitter) expressed dissatisfaction with apparent delays in the token’s much-anticipated airdrop – a planned giveaway of tokens to early users and community members.
In a blog post, the Sei team stated that “the airdrop will open for claiming at the Public Mainnet launch.” However, when the network started on Tuesday, users were unable to claim tokens, causing dissatisfaction and uncertainty among early Sei adopters anxious to claim their part.
In the 24 hours following Sei’s mainnet activation, the status of the airdrop remained unknown. Sei Labs emphasized in an X post on Wednesday, a day after the network’s launch, that “airdrop rewards will be claimable following an initial warmup period,” but it did not specify an exact timetable. It wasn’t until later that day, after the SEI airdrop had already been branded a “fiasco” by some observers, that the airdrop claim process was finally opened to consumers.
By that point, the incident had come to symbolize the messiness inherent in crypto airdrops: a popular, albeit problematic, means of gaining network members.
Application-Specific Blockchain
Sei is a new network created with the Cosmos SDK, which is a software development kit that can be used to quickly create new blockchains that are interoperable with other networks in the Cosmos ecosystem.
Sei Labs, the key contributor to the Sei blockchain, raised $30 million in fundraising in April, for a $800 million valuation.
The organizing principle of Sei is that it is an application-specific network; unlike general-purpose blockchains like Bitcoin and Ethereum, which have evolved to support a wide range of use cases, Sei is designed with a special emphasis on speed, low fees, and other features specially tuned to support specific types of trading apps.
In an interview, Sei co-founder Jeff Feng stated that the company’s focus will be on social platforms, gaming, and carbon credits.
“Every single successful crypto application right now is either directly or indirectly a trading application,” Jay Jog, another co-founder, told CoinDesk TV on Wednesday. “What we’ve discovered is that trading applications built on-chain right now simply cannot scale.” And, rather than iterating on exchange-mechanism design, we believe that a fundamental redesign of the underlying infrastructure is the solution.”
SEI Token Airdrop
The launch of Sei’s mainnet coincided with the formal announcement of a “airdrop” of the SEI token, which would be used for network fees and proof-of-stake security. Airdrops are a common way for blockchains to recruit users and bootstrap liquidity by rewarding early adopters and network testers with a portion of a network’s tokens.
Despite the fact that airdrops have become a standard part of the blockchain launch strategy, they are nearly always hampered by legal, operational, and technical hiccups. The SEI airdrop was no different.
According to Sei Labs, the SEI airdrop was designed to allow users of popular blockchains such as Ethereum, Solana, and Binance Smart Chain to claim an allocation of SEI tokens upon “bridging” assets over to the new network – an incentive scheme designed to entice users away from these incumbent platforms. Users of Sei’s test network were also expected to acquire SEI tokens.
Following the formal announcement of Sei Labs’ plans for an SEI airdrop, some users encountered difficulties claiming their allotment of tokens and claimed difficulty comprehending the specific eligibility conditions. Users have also reported difficulties connecting to Sei’s official Discord server, which serves as a chat medium for community members to interact and exchange updates. Sei’s Discord appeared to fall offline on Tuesday, and CoinDesk was still unable to join it at the time of publication.
Frustrated Communities
A Sei Foundation spokeswoman responded in an emailed answer to CoinDesk enquiries on Wednesday, around five hours before the SEI airdrop was opened to users: “The airdrop is not delayed.” While many expected the airdrop would take place on Mainnet launch, token distribution is controlled by the Sei Foundation, which has never announced when the airdrop will take place.”
The eligibility requirements for the airdrop will be revealed when it occurs, according to the spokeswoman.
“While the Sei Foundation is aware of the community’s frustration due to the misunderstanding about the connection between the mainnet launch and the Atlantic rewards and airdrop, we encourage the community to remain patient as we wait for the final ecosystem partners and globally distributed validators to complete their work to ensure their decentralized applications function smoothly for the Sei community on mainnet beta launch,” said the spokesperson.
The representative also addressed the Discord drama, saying, “The Sei Foundation decided to limit channels due to increased spam and fraudulent links in the official discord as a result of the excitement around the mainnet beta launch.”
According to Sei Labs, 40% of SEI’s circulation supply is reserved for its staff and private investors. 48% of the token’s supply is designated for ecosystem reserves, which include activities such as the airdrop and other incentive programs. The remaining supply will be split between the SEI Foundation (9%), and Binance launchpool incentives (3%).
Risk disclaimer:
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.
