Gitea is managed by a for profit which is now offering a hosting service. That alone is already a conflict of interest because one of Giteas core features is the easy self hosting.

Then the contribution guidelines have been made stricter, anyone contributing now has to give up their copyright to the gitea management, meaning they could change the opensource license to a stricter one down the line without requiring community consent.

The concern is that as time passes features will be locked behind a premium tier for self-hosters or the self-hosting itself will be made more difficult in an effort to push their cloud service.