•Sei Network launched the public beta of its Mainnet on Aug 15.
•The launch was quickly followed by rumors of a SEI coin scam on Twitter.
•SEI token trading volumes decreased 33% on Aug 17 after the Mainnet launch.
Sei Mainnet Token Goes Live
Sei Network launched the public beta of its Mainnet on Aug 15, with SEI token pairs trading booming on platforms like Binance and KuCoin. The token was the eighth-highest traded cryptocurrency in the past 24 hours.
Rumors of a Sei Coin Scam
Shortly after the launch, rumors of a SEI coin scam quickly spread across social media networks such as Twitter, leading to the creation of #seiscam hashtag with near 40,000 posts where users accused the network of botching the Airdrop and not delivering on their promises.
Red Flags for Potential Traders
There were several red flags that warned potential traders about a risky investment, such as an ambassador program during which enthusiasts could get roles but then later announced that awards would only be received starting from “Captain” role, and no one actually received any rewards despite having contributed content for a month or more to the project. Additionally, investors and team members had been selling large bundles of tokens to ordinary users on Binance which seemed unrealistic considering farming difficulties present in Binance LaunchPool.
Decrease in Trading Volumes
On Aug 17 after Mainnet launch, SEI token trading volumes decreased 33%. Data from CoinMarketCap shows five pools occupying most of these trades with 27% collectively; Upbit exchange takes second place with 16%.
Conclusion
All in all, accusations against Sei Network have been mounting since its Mainnet launch due to several red flags present throughout its development process that led to near 40k posts questioning their legitimacy under #seiscam hashtag. This controversy caused SEI price to drop possibly in response while trading volumes decreased 33%, most coming from five pools at Binance and 16% coming from Upbit exchange.