Is it safe to buy the SEI token after exchange listing?
SEI token will be in the spotlight next week as Binance is scheduled to list it on its platform. Data published by Aevo, a new crypto futures platform shows that the token will likely open at 26 cents. If this happens, it means that the token’s market cap will be over $500 million, making it one of the most successful launches this year.
SEI is the 36th project coming from Binance launchpool. The other blockchains to come from the ecosystem are Sui and Bella Protocol. According to its website, Sei is a layer 1 network that specifically focuses n trading. It will enable developers to build projects that are at the intersection of centralized and decentralized exchanges.
Sei uses the Twin-Turbo consensus and multiple degrees of parallelization to reduce latency and boost throughput. Its website identifies several projects in its ecosystem, including Alpha Venture DAO, Apollo DAO, and Astroport.
The challenge for SEI and other new layer-1 and layer-2 networks – including Coinbase’s Base, is that the industry is highly saturated, with most activity happening in Ethereum. For example, PayPal selected Ethereum as its blockchain for the new PYUSD stablecoin.
Many developers are also moving to layer-2 networks like Arbitrum, Optimism, and Polygon. Most importantly, many of the recently launched layer 1 networks like Aptos and Sui have not gained traction among developers.
Therefore, there is a likelihood that SEI token price will likely rise shortly after listing and then retreat shortly after that.