Keeta Network saw its token price fall sharply after reaching a record high, following harsh criticism from analysts who questioned the project’s legitimacy.
Several experts claimed the testnet was not genuine, and they raised concerns about who controls the token supply. This pushback coincided with a nearly 30% drop in KTA’s value, casting doubt on the blockchain’s future.
Analysts’ Criticism
Analysts took aim at Keeta Network shortly after its KTA token peaked at $1.70. Michael Ruzic, founder of DeFi Capital Markets, called Keeta’s testnet “completely fake.”
He pointed out that the network explorer appeared to display made-up transaction data and that swaps did not function properly. Ruzic described the whitepaper and developer documents as substandard, suggesting they were generated by artificial intelligence rather than crafted by real experts.
Another critic, on-chain investigator ZachXBT, weighed in by stating that the project’s most vocal supporters were questionable influencers with little technical background.
According to ZachXBT, having so-called key opinion leaders controlling the token supply points to weak technology. He noted that these influencers had maintained tight control over KTA’s circulation, which he found worrying.
Network Response
Despite the criticism, Keeta Network seemed unfazed. The team announced plans to host an X(Twitter) Spaces session later in the day to discuss a new partnership and other network developments.
The session is meant to give community members a chance to hear directly from the founders. Keeta’s leaders hope to reassure investors and keep the project on track amid growing scepticism.
About Keeta Network
Keeta is a Layer 1 blockchain built for small-scale cross-border payments. The project aims to compete with traditional systems such as SWIFT by offering faster and cheaper transactions.
One notable backer of Keeta is Eric Schmidt, former CEO of Google and one of the world’s wealthiest individuals. His support has brought added attention to the network and its plans.
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After a modest start, Keeta’s fortunes surged in May. The token’s value jumped by 1000% since May 1, driven by rising interest from the crypto community. The launch of the testnet and several listings on smaller centralised exchanges helped fuel this rapid growth.
$KTA’s Price Actions
At the time of writing, KTA was trading at $1.16, down nearly 30% in the past 24 hours. Despite the drop, trading volume soared by 147%, suggesting that many investors were still buying and selling rapidly.
Keeta’s total market capitalisation stood at approximately $466.55 million. The high trading activity reflects both the excitement and the anxiety surrounding the project’s future.
Keeta Network now stands at a crossroads. The swift fall in token value highlights the challenges of building trust in a crowded blockchain landscape.
The coming days will reveal whether Keeta’s leadership can address doubts, solidify technical foundations, and regain investor confidence. If they succeed, the network could still carve out a niche in the fast-evolving world of digital payments.
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