Celestia has secured $100 million as a token launch of $1.13 billion.

Late Monday, the Celestia Foundation announced that it had secured $100 million in funding led by Bain Capital Crypto. This round saw contributions from Syncracy Capital, 1kx, Robot Ventures and Placeholder, bringing the total capital raised to $155 million.

The specific allocations of the new funds remain undisclosed.

Celestia (TIA) price increased by more than 20%

However, Celestia Foundation founder Mustafa Al-Bassam highlighted the core developers' commitment to a new technical roadmap.

“Since Celestia launched last year as the first modular data access layer, it has advanced the block space from the dial-up era to the broadband era. Now, the main developers have introduced the technical roadmap to adapt blockchain to the fiber optic era – keeping it secure and low latency,” said Al-Bassam.

After the announcement, the market responded positively. The foundation's native token, TIA, rose 21% in value, although it later rose to 12.25%. TIA currently trades at $6.40 with a market capitalization of $1.36 billion. Despite this upheaval, the token is still up more than 65% from its February 2024 high.

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Interestingly, the timing of this announcement comes just a month before the launch of the Celestia token on October 31st.

“This was a no-fee deal a few months ago with the foundation directly valued at $3.5 billion, and I think it will open in October. Even if the investors sell the full open at $7.5, they will break even,” said crypto analyst Sisyphus.

According to data from CryptoRank, this event will release 175.74 million tokens, or 16.4% of the total supply, into circulation. At current market prices, the value of these tokens is close to $1.12 billion, which represents an impressive 82.2 percent of the token's total market capitalization.

Token unlock details are as follows:

182,240 TIA for research, development and ecosystem improvement, valued at $1.17 million. 65.01 million TIA will go to Series A and investors, totaling $418.52 million. 58.08 million TIA is earmarked for major contributions, amounting to $373.9 million. 52.47 million TIA allocated to seed investors, totaling $337.79 million.

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Due to Celestia token launches, some traders plan to short TIA tokens. However, Sisyphus voiced concerns about market volatility surrounding the launch.

“If most people know about the opening, it will be short. On the other hand, if it has not been widely discussed yet, it will remain short.

This outlook sheds light on the delicate balance traders face in anticipation of market movements.

As October approaches, the implications of the token launch for TIA's market stability are increasingly coming into focus. Traders should implement strict risk management practices to minimize the effects of expected volatility.