Key Takeaways:
- Celestia co-founder Mustafa Al-Bassam defended the project’s financial stability and long-term vision, despite escalating accusations of insider profit-taking and misconduct.
- Community backlash centers on Celestia’s token unlock schedule and alleged insider selling, as the TIA token has crashed over 92% from its all-time high.
- While the team highlights Celestia’s market share in data availability for rollups, critics question whether current adoption will lead to sustainable growth.
Celestia co-founder Mustafa Al-Bassam has come forward to defend the project amid rising accusations of insider misconduct and community mistrust following a steep decline in the price of its native TIA token. In a post on X, Al-Bassam reaffirmed the team’s commitment and highlighted Celestia’s financial strength, despite escalating criticism.
Despite the FUD (which is getting more ridiculous by the day), all Celestia founders, early employees and core engineers are still here and working as hard as we did when Celestia started 5 years ago.
— Mustafa Al-Bassam (@musalbas) June 23, 2025
So say that Celestia did 9/11 for all I care or whatever FUD you want, I've… https://t.co/lvYDO9bqUn
Team Reaffirms Commitment Despite FUD
“Despite the FUD (which is getting more ridiculous by the day), all Celestia founders, early employees and core engineers are still here and working as hard as we did when Celestia started 5 years ago,” Al-Bassam wrote on Monday.
He further underscored the project’s long-term viability, citing a $100 million+ treasury and a six-year operational runway. Al-Bassam downplayed the significance of recent token price volatility, noting such cycles are common in the crypto industry.
Allegations of Insider Selling Rock Community Confidence
The statement comes in response to a viral X thread by “Startup Anthropologist,” which accused Celestia insiders of coordinated profit-taking. The post alleged that Al-Bassam sold over $25 million in over-the-counter deals and relocated to Dubai. It also charged that paid promotions contributed to misleading retail investors while insiders quietly liquidated their holdings.
from personal diary: celestia's crime pattern
— Startup Anthropologist (@0xCircusLover) June 23, 2025
– all c-suite had unlocks in early oct 24
– team unlocks in late oct
– mustafa sold 25m+ in OTC, moved to dubai
– andy got paid $$$$$$ to shill tia
– nick flew abril to paris
– yaz got fired for sexual harassment, moved out of brypto
Community members also scrutinized Celestia’s token unlock schedule, calling it unfair to retail participants. One critic on X asked: “Why do you have a token unlock that lasts 3/4 years?”—arguing that the structure disproportionately benefited insiders.
Market Strategy and Future Prospects Under the Microscope
Criticism of Celestia’s go-to-market strategy is not new. In May, investor Larry Sukernik described Celestia as a “cautionary tale” of trying to force adoption without a loyal user base. He questioned whether Celestia’s early leap into the data availability (DA) space was premature.
IMHO, Celestia is a good case study in the difficulty of trying to brute force market creation with marketing/narratives
— Larry Sukernik (@lsukernik) May 6, 2025
Appchains/vertical integration only makes sense when you have lots of loyal users. Otherwise, why bother improving your margins when you’re not making any… https://t.co/Y16bgGwAA2
Al-Bassam responded by emphasizing Celestia’s role in supporting over 30 rollups and claiming dominance in DA throughput. Yet skeptics argue that current market share may not translate into lasting economic traction.
Also Read: Celestia (TIA) Hits All-Time Low — Will $1 Hold?
At press time, TIA is trading at $1.61, up 14% in the past 24 hours. However, it remains down more than 92% from its June 2024 peak of $20.91. Whether Celestia can restore community trust and convert market presence into sustainable growth remains an open question.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
