Key Takeaways:
- Sei scam accusations mount after the Mainnet launch.
- The community points out several red flags.
- SEI price dropped on Aug 17, possibly in response to the controversy.
YEREVAN (CoinChapter.com) — Sei Network launched the public beta of its Mainnet on Aug 15 after an extensive advertising campaign on social networks. SEI token pairs trading boomed on platforms like Binance and KuCoin, with the token being the eighth-highest traded cryptocurrency in the past 24 hours.
However, rumors of the SEI coin scam quickly took over Twitter.
Is SEI Network Scam Real?
The hashtag #seiscam now has near 40,000 posts where users accused the network of botching the Airdrop and not delivering on their promises.
“Sei turned out to be a total disappointment for every contributor. The #SeiScam trend confirms the general mood of the community,” wrote a crypto trader, who claims not to have a dog in the fight. They also commented that there were several red flags to warn the potential traders of a risky investment.
Sei had an ambassador program during which enthusiasts could get roles. Initially, the project documentation indicated awards starting with the role of “Officer.”
Then the team announced that the awards would only be received starting from the role of “Captain.” Apparently, users had to create content for the project for a month to get the minimum reward as a Captain, which did not bode well among Sei token enthusiasts.
During the year of the ambassador program, how many people do you think received the title of ambassador? No one. NO ONE. Community been contributing without even knowing anything about rewards and tokenomics. Btw, the whole tokenomics was published on LISTING DAY.
commented the pseudonimous trader.
The community also highlighted that investors and the team sell their tokens to “ordinary users on Binance.” They claimed that SEI tokens’ “large bundles” seem unrealistic, considering the difficulties of farming large quantities of tokens on the Binance LaunchPool.
SEI Token Price Falls Alongside Volumes
Meanwhile, SEI token trading volumes decreased 33% on Aug 17 after the Mainnet launch. According to coin tracker CoinMarketCap, five pools on Binance occupy the leading positions among SEI markets, with a collective of over 27% of the trading volumes.
Upbit exchange, on the other hand, was responsible for nearly half of the overall trading on Aug 15. According to China-based crypto reporter Colin Wu, the exchange mainly traded SEI against Korean Won (KRW), reaching $544 million.
However, due to the Sei scam accusations and rising uncertainty, the token price plunged 35% in the previous 24 hours and stood at $0.18 at 10:00 GMT on Aug 17.
