Earn passive income without unlocking! Celestia seed round investors can break even every 3.5 days with pledge rewards.

Earn passive income without unlocking! Celestia seed round investors can break even every 3.5 days with pledge rewards.

Earn passive income without unlocking! Celestia seed round investors can break even every 3.5 days with pledge rewards.

As is well known, most cryptocurrency projects impose lock-up restrictions on early investors. Therefore, even for successful investment cases, venture capital firms generally need several years to recover their principal. However, currently, many projects allow locked tokens to participate in staking rewards (such as SAGA, DYM, TIA, etc.), enabling venture capital (VC) to earn substantial staking rewards before the quota is unlocked.

To understand how long it would take for VC to earn staking rewards, X netizen Sumokuji made a preliminary estimation of the staking returns for early investors in TIA. It is reported that Celestia raised $1.5 million in seed funding in 2021, selling approximately 159,000,000 tokens at a price of only $0.0094. Among them, 33% will be unlocked in the first year, while the remaining 67% will be unlocked in batches within two years.

Sumokuji stated that based on a valuation of $10 million, $100,000 would yield 10 million tokens. The annual interest rate for staking TIA is about 11.23%, which translates to a monthly staking return of 90,000 TIA tokens, equivalent to $855,000. This means that Celestia’s seed round investors can recoup their investment every 3.5 days solely through staking rewards, without selling their initial quota.