- Cryptocurrency Avalanche (AVAX) made headlines. But in the flood of information, it can be hard to pinpoint exactly what’s going on, and we’ll explain it.
- AVAX faces allegations of poor play against competitors from the Crypto Leaks report.
- A portion of KKR’s Strategic Healthcare Growth Fund was recently tokenized onto the avalanche platform.
What is avax?
First, let’s get a little bit of the backstory on AVAX.
Avalanche is a cryptocurrency and blockchain platform created to rival Ethereum. Within the Avalanche blockchain, AVAX is used as a token to support a range of blockchain projects, such as tracking smart contracts.
With the launch of the Avalanche platform in 2020, it has become a fast, secure and affordable way to process transactions. Although the platform can continue to generate AVAX coins up to the maximum of 720 million tokens, the minting rate is affected by the votes of existing AVAX holders.
AVAX is used to secure any transactions made on the Avalanche network, but you can buy tokens from any major cryptocurrency market.
Avax: trends over time
Cryptocurrency investors are no strangers to market volatility. In fact, you can make the argument that cryptocurrency is one of the most volatile asset classes out there. After hitting an all-time high of $146.22 in late 2021, AVAX has plummeted in value. As of mid-September 2022, AVAX is trading at $19.49. This is a loss of 87.6%.
AVAX: Latest News
The value of the AVAX token is related to the utility of the Avalanche platform. If people want to use the Avalanche platform, the value of AVAX tokens goes up. On the flip side, if the platform becomes obsolete, or unpopular, the AVAX token will likely not be useful for an investment portfolio.
Here's a look at the latest titles and how this information could affect the value of AVAX.
In August 2022, a whistleblower named Crypto Leaks released a report detailing allegations against Ava Labs, the company behind the Avalanche blockchain. In this report, Crypto Leaks accused Ava Labs of shady deals designed to weaponize the power of litigation against other platforms.
Specifically, the report identified a scheme that Ava Labs alleged was carried out with a law firm. The law firm, Roche Freedmen, was supposed to research Ava Lab competitors with the goal of collecting dirt. With Dirty Laundry, the law firm was supposed to use the information to build class-action lawsuits against these competing firms.
The Crypto Leaks report stated, "We can reveal that the charter directs Roche Freedman and their leader, Kyle Roche, to: 1) use the US legal system - gangster style - to attack and harm crypto organizations and enterprises that may compete with Ava Labs or somehow avalanche, 2) Prosecuting actors in the cryptocurrency industry generally with the aim of creating a magnet for regulators such as the SEC and CFTC that would distract them from the highly commercial nature of the Ava Labs and Avalanche blockchain, and 3) secretly chasing Emin Gün Sirer’s personal revenge against individuals.”
If rival companies face lawsuits, this could significantly hamper their ability to compete with Ava Labs. According to the report, Ava Labs planned to reward the law firm with a large amount of AVAX tokens and Ava Labs shares.
After the report was published, the value of AVAX plummeted. Emin Gün Sirer, CEO of Ava Labs, denies allegations of any improper agreements between his company and law firm Roche Freedmen.
private equity tokens
As the allegations continue to circulate, there is one heartening piece of encouraging news about the avalanche platform.
Securitize is a digital asset securities firm that launched a portfolio token fund from KKR's second healthcare strategic growth fund. This token occurred in the avalanche block chain.
The big goal of this token is to create a path for individual investors to participate in investing in the private market. If the trend continues, this type of coding can help investors first dive into more private market investment opportunities without niche connections or piles of cash.
If you are looking to invest in cryptocurrency, it is possible to buy AVAX tokens through major crypto exchange platforms. But when it comes to investing in individual cryptocurrency assets, it is a good idea to prepare yourself for intense monitoring.
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