Leading exchanges like BinanceBybitHuobi, and Kraken listed the token on August 15. And most recently, SEI was listed on the largest US-based cryptocurrency exchange, Coinbase.

In this article, you will discover if this is a good moment to buy SEI, it’s native token, or just wait.

What is SEI?

Sei Network is a layer-1 blockchain built on Cosmos SDK specialized for high-frequency trading applications that offer faster transaction speed than the likes of Solana.

The project raised $30 million from Jump Crypto, Multicoin Capital, and Flow Traders in a strategic funding round in April, valuing the blockchain at $800 million.

How Far Can Sei Go in Price the Future?

The chain’s degen-focused online community seems to have connected particularly with the South Korean retail market, with trading surging on local exchanges Bithumb and Upbit. As of now, we saw SEI trading at 26 cents immediately after the debut. Now it’s currently at 14 cents.

We could see a good a good movement as the pre-listing futures becomes perpetual swaps on the listing. Basically longs pay shorts when perpetuals trade at a premium to the spot price, and shorts pay longs when perpetuals trade at a discount. This could give it a good pump and we could see SEI reaching nearly half a billion in market cap.

The SEI Ecosystem

The first thing to emphasize about this project is that Sei Labs, the development team contributing to the ecosystem, initially planned on running it as a scaling solution on Ethereum.

However, issues around a centralized sequencer system and limited throughput caused by Ethereum saw Sei utilize the Cosmos SDK and Tendermint Core mechanisms to launch as a layer-1 protocol designed to be optimized for trading.

The blockchain protocol also announced another $50 million investment led by Foresight Ventures to boost its Sei Ecosystem Fund, which now has $120 million in its portfolio. -it has over 200 teams building on it and more than 7.5 million unique wallets

In May, Sei Labs raised $30 million across two funding rounds including investors such as Jump Crypto, Multicoin Capital, and Flow Traders. Focusing on trading apps, the protocols cover liquidity providers, gaming, DEXes, NFTs, Metaverse, infrastructure, and wallets. Prominent names like Bitget, Fable League, Falcon Wallet, and more are part of its ecosystem. Check out the ecosystem projects here.

Buying SEI or Not?

I’m not aping in as things around its SEI distribution are quite shady.

The mishap: Last Thursday, the airdrop of SEI tokens to early adopters of the blockchain turned into a disappointing event in the crypto market. Recipients seemingly rushed to dump their holdings, triggering a wave of criticism on Twitter due to insufficient token allocations.

Notably, users were granted a maximum of 110 SEI tokens during this airdrop. Let’s consider an average of 100 tokens per user. According to Sei’s announcement of a 300 million token airdrop, a simple calculation (300M ÷ 100) equals 3 million Testnet Users. This scenario could have potentially positioned SEI as the largest Layer 1 project which is funny.

Finally, it’s important to highlight that approximately 500k testnet users were in existence (assuming all received the airdrop). If we apply basic arithmetic (300M ÷ 500K), it logically suggests that around 600 SEI should have been distributed. So where are the missing SEI tokens??

⬆️ For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.

⬆️ Our popular Altcoin Buzz Access group generates tons of alpha for our subscribers. And for a limited time, it’s Free. Click the link and join the conversation today.

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.