Avalanche Crypto News: What’s the deal with the AVAX scandal? -Forbes | Jewelry Dukan

The central theses

  • Avalanche Crypto (AVAX) has made headlines. But in the flood of information, it can be difficult to pinpoint exactly what is happening, we fix it.
  • AVAX faces allegations of foul play against competitors from a Crypto Leaks report.
  • Part of KKRs
    Health Care Strategic Growth Fund II was recently tokenized on the Avalanche platform.

What is AVAX?

First, let’s go through a little bit of AVAX’s backstory.

Avalanche is a cryptocurrency and blockchain platform designed to compete with Ethereum. Within the Avalanche blockchain, AVAX is used as a token to support a number of blockchain projects such as: B. tracking smart contracts.

After launching in 2020, the Avalanche platform has positioned itself to become a fast, affordable and secure way to process transactions. While the platform can continue to mint AVAX coins up to the 720 million token cap, the rate at which tokens are minted will be impacted by the votes of current AVAX holders.

AVAX is used to secure all transactions that take place on the Avalanche network, but you can buy the tokens on any major cryptocurrency marketplace.

AVAX: Trends over time

Cryptocurrency investors are no strangers to market volatility. In fact, one could argue that cryptocurrency is one of the more volatile asset classes out there. After hitting an all-time high of $146.22 in late 2021, the value of AVAX has plummeted. As of mid-September 2022, AVAX is trading at $19.49. That’s a loss of 87.6%.

AVAX: Latest News

The value of an AVAX token is tied to the usefulness of the Avalanche platform. When people want to use the Avalanche platform, the values ​​of AVAX tokens increase. On the other hand, if the platform becomes obsolete or just plain unpopular, the AVAX token probably wouldn’t be as useful for an investment portfolio anymore.

Here’s a look at the latest headlines and how that information could impact AVAX’s value.

Whistleblower Allegations

In August 2022, a self-proclaimed whistleblower known as Crypto Leaks released a report detailing allegations against Ava Labs, the company behind the Avalanche blockchain. In that report, Crypto Leaks accused Ava Labs of shady backdoor deals aimed at weaponizing the power of litigation against other platforms.

Specifically, the report outlined a scheme Ava Labs allegedly made with a law firm. Law firm Roche Freedmen reportedly wanted to investigate Ava Lab’s competitors to collect dirt. With the dirty laundry, the law firm reportedly wanted to use the information to build class action lawsuits against these competing companies.

The Crypto Leaks report states: “We can uncover that the Pact directs Roche Freedman and its leader Kyle Roche to: 1) use the American legal system – gangster style – to attack and harm crypto organizations and projects, that could compete with Ava Labs or Avalanche in any way, 2) are suing crypto industry players in general with the aim of creating magnets for regulators like the SEC and CFTC to dissuade them from the highly commercial nature of Ava Labs and Avalanche blockchain, and 3) covertly pursue Emin Gün Sirer’s personal vendettas against individuals.”

If competing companies were to face lawsuits, it could significantly affect their ability to compete with Ava Labs. According to the report, Ava Labs planned to reward the law firm with an extensive amount of AVAX tokens and shares of Ava Labs.

After the report was released, AVAX’s value plummeted. Ava Labs CEO Emin Gün Sirer denies allegations of improper agreements between his company and the law firm Roche Freedmen.

Private Equity Tokenization

As the allegations continue to swirl, there is one important piece of encouraging news about the Avalanche platform.

Securitize is a digital asset investment firm that launched a fund that tokenized a portfolio of KKR’s Health Care Strategic Growth Fund II. This tokenization happened on the Avalanche blockchain.

A major goal of this tokenization is to give individual investors the opportunity to participate in private market investments. If the trend continues, this type of tokenization can help investors dive headfirst into more private market investment opportunities without specialized connections or wads of cash.

crypto investments

If you want to invest in crypto, you can buy AVAX tokens through major cryptocurrency exchanges. But when it comes to investing in individual cryptocurrency assets, it’s a good idea to prepare for extensive monitoring.

The good news for new crypto investors is that there is another option. Instead of signing up for a large commitment in a single cryptocurrency, you can diversify your crypto holdings by investing in Q.ai’s Crypto Kit. When you invest in the Crypto Kit, Q.ai takes care of the monitoring so you can easily build an investment portfolio that balances risk and executes trades.

Download Q.ai today for access to AI-supported investment strategies. If you deposit $100, we’ll add another $100 to your account.

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