Professor Raises Concerns Over Unfair Practices in Aptos and Celestia Crypto Projects

In a recent statement, Professor Malekan highlighted concerning practices within new crypto ventures like Aptos and Celestia, expressing discontent over an "insider" privilege granted to token holders.

Unfair Insider Practices

The professor noted the trend of projects allowing insiders with locked tokens to stake and earn rewards. While acknowledging the importance of staking for network security, Malekan criticized this practice as unfair. Insiders, often early adopters obtaining tokens at discounted rates, gain an unfair advantage, potentially leading to significant asset accumulation.

Immediate Selling of Staking Rewards

Expressing concern, the professor condemned the allowance for insiders to immediately sell their staking rewards even before token vesting, labeling it a "wrong" practice. This behavior, termed a "backdoor unlock," enables privileged insiders to profit quickly at the expense of ordinary users.

Call for Tokenomics Reassessment

Malekan urged new and existing platforms like Celestia and Aptos to reconsider their tokenomics strategies. Prioritizing fairness and equality among all token holders should supersede favoring insiders and early investors for long-term sustainability.

Regulatory Warnings and Impact on Staking

Highlighting potential regulatory intervention, the professor cautioned that agencies like the SEC might step in if these concerns are unaddressed. The SEC's careful evaluation of altcoins, considering them as potential securities, could impact staking practices and network security.

Uncertainty in Regulatory Classification

Uncertainty prevails regarding the regulatory classification of altcoins, with the SEC's stance on Ethereum's classification remaining ambiguous. This classification holds significance for staking activities and network operations.

The professor's critique underscores the need for fair practices in crypto projects, emphasizing the potential impact on stakeholders and network stability. Failure to address these concerns could invite regulatory scrutiny, affecting staking mechanisms and broader industry dynamics.