Emin Gün Sirer allegedly paid lawyers to attack his competitors but denied those accusations, saying he would never engage in illegal or unethical behavior. The rumors are unlikely to affect the price of AVAX in the medium to long term, as they only involve Ava Labs.
Although its launch recently occurred in 2020, Avalanche (AVAX) was among the fastest-growing cryptocurrencies in 2021. However, the rising transaction fees in Ether (ETH) have placed it as an option. AVAX is now in the top 16 crypto assets by market capitalization.
It hit its all-time high of USD 151 in November 2021 and its yearly low of USD 13.7 in June 2022. Then AVAX started to trade at 30.89 USDT on the Binance cryptocurrency exchange.
The daily chart shows five red candlesticks in a row, representing a drop of over 10% compared to the previous day. The collapse in the overall crypto market, the Fed announcements and some rumors about the CEO of Ava Labs caused that fall.
AVAX is trading below the 20, 50 and 100-EMA, which signals a bearish trend.
The Fed announcements caused the crypto market to suffer a sharp pullback. However, the price of AVAX dropped much further due to a scandal involving Emin Gün Sirer, the CEO of Ava Labs.
Emin Gün Sirer Allegedly Pays Lawyers to Attack His Competitors
According to a note on the Crypto Leaks portal, Emin Gün Sirer, the founder of the Avalanche project, allegedly paid lawyers to attack his competitors.
The extensive note shows videos of conversations between Sirer and alleged members of a law firm famous for conducting cryptocurrency-related lawsuits.
The voices in the audiovisual materials appear distorted, but Sirer refers to the firm and some lawsuits.
The CEO of Ava Labs denied those accusations, saying he would never engage in illegal, unethical, or wrong behavior. He stated those self-serving videos and inflammatory articles were ridiculous and part of a conspiracy theory.
Although Sirer defended himself, he has not yet responded in time to all the accusations in the note.
Changpeng Zhao, the CEO of Binance, described the accusations as wild in a tweet. He also said the cryptocurrency exchange was the subject of lawsuits from Sirer despite not being a competitor.
Medium- and Long-Term Predictions about the Price of AVAX
This technical analysis of AVAX indicates the repercussion of this fact in the medium and long term.
Despite the impact of those rumors on the price of AVAX, they are unlikely to affect it in the medium to long term. The scandal involves Ava Labs, not the integrity of the Avalanche project itself.
If confirmed, the alleged unethical attitude of Sirer indicated in the above note leaves a lot to say. However, AVAX is a solid project with significant development, making it unlikely to escalate to the judicial level. Besides, the behavior he shows in the videos is unethical but not criminal.
To conclude, this network reached an all-time high in the number of daily transactions on August 9th. There were more than 1.51 million transactions, which positions this blockchain as one with high performance.
By Alexander Salazar
