SEI Network, an emerging player in the trading-focused layer-1 blockchain arena, has announced the rollout of its “mainnet beta” phase, marking a significant milestone in its development.

Backed by a substantial $120 million investment from renowned backers Multicoin and Coinbase, the network’s ambitions are high.

However, the journey toward its current stage has been marred by a series of challenges, including disgruntled participants in its airdrop program.

As SEI Network launched, excitement was palpable in the crypto community, fueled by company representatives hinting at the immediate availability of airdrop claims.

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This promise was quickly dashed when an official Tweet clarified that tokens would only become claimable after an unspecified “warmup” period, triggering a wave of frustration among eager participants.

Sei leaves a sour taste.

Be an ambassador with Sei for a year, contribute – get $40 to $200

Don’t do anything, spend 2 mins to bridge for fake volume – get $1k

That ain’t right. And you aren’t tricking anyone with fake metrics @SeiNetwork

— Auri (@Auri_0x) August 17, 2023

Discontent Rises Over SEI Airdrop Distribution

When the airdrop claims finally went live, participants were quick to express their dissatisfaction with the meager token distribution. The hashtag “SeiScam” began trending among a certain subset of users, reflecting their disappointment in what they perceived as an underwhelming allocation of rewards.

Critics went so far as to label the situation as the “Worst L1 Blockchain Airdrop distribution mechanism ever seen” and even dubbed SEI Network the “first Meme Blockchain.”

$Sei , #SeiNetwork Ecosystem Rip

Worst L1 Blockchain #Airdrop distribution mechanism ever seen ( 1st L1 Meme Blockchain)

Community is Key = Lmao

1 Year Of Rewards = 10 $sei – 110 $Sei $Sei Team Doesn’t Have Any experience in web3 #SeiScam https://t.co/K0Bf7eZJAW pic.twitter.com/fRFZU8MRb5

— Gautamgg.eth/sol (@Gautamguptagg) August 16, 2023

Sifting through the controversy, SEI Network has been at the center of heated debates, with claims ranging from “fiasco” to “not a scam.” The network’s decision to lock down its Discord channel on the day of the token launch added fuel to the fire, further stoking skepticism within the community.

A spokesperson for the network, however, offered explanations for the criticism, attributing it to the airdrop’s perceived letdown and the unexpected discord lockdown.

Focus Of Complaints And Continued Challenges

A significant portion of complaints centered around SEI Foundation’s choice of reward recipients. Critics lamented the disparity between rewards for diligent testnet users and those who chose to bridge substantial amounts of funds into the network. This discrepancy led to accusations of favoring “whale behavior” over fair distribution.

While the network continues to encourage users to deposit funds through bridges, the ongoing program has encountered its own set of challenges.

SEI is currently trading at $0.1579. Chart: TradingView.com

Numerous users reported difficulties bridging their funds back off the chain after successfully claiming their airdrop rewards. SEI Foundation acknowledged the issue, revealing that the Wormhole bridge had hit its “daily limit,” adding another layer of frustration for users.

SEI Network’s Future Amidst Turmoil

Despite the hurdles and controversy, SEI Network is pushing forward, with its “mainnet beta” phase now underway. The network’s resilience is evident as it increases the cap for its ongoing bridge deposit program due to high demand.

As SEI continues to navigate its path, the crypto community watches closely, hoping for smoother waters ahead.

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As of the latest data from CoinGecko, the SEI token is priced at $0.161792, reflecting a 5.5% decline in the last 24 hours. The network’s journey, marked by both excitement and setbacks, underscores the volatile nature of the crypto space and the challenges associated with launching ambitious projects.

Featured image from Dreamstime

The post SEI Token Stirring Controversy: Backlash Erupts Among Early Adopters And Airdrop Farmers appeared first on Crypto News Australia.

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Filed under: Bitcoin - @ August 18, 2023 4:23 pm