Avalanche (AVAX) Down 20% in Seven Days: Here’s Why

The current Avalanche (AVAX) price is $19.74, and the 24-hour trading volume is $590 million. The Avalanche has increased by 3.53% in the last 24 hours, but it fell by more than 20%. The AVAX/USD pair began the day at $18.53, and AVAX/USD is currently trading at $17.84, having previously reached a high of $18.64 and a low of $17.50.

CoinMarketCap now ranks #16 with a live market cap of $5.6 billion. There are 285,073,376 AVAX coins in circulation, with a maximum supply of 720,000,000 AVAX coins.

Avalanche (AVAX) Sued Competitors

The most recent major cryptocurrency controversy has brought Avalanche to the forefront. Crypto Leaks, a cryptocurrency whistleblower, published a report on August 26. According to the information, the law firm Roche Freedman received 1% of the AVAX token supply from Ava Labs, the company responsible for building the Layer 1 blockchain.

Ava Labs stock in exchange for assistance in bringing litigation and class-action lawsuits against some of its competitors. Roche Freedman, a law firm, is well-known in the cryptocurrency industry. Several videos show founding partner Kyle Roche saying that Roche Freedman accepted money to help Ava Labs and attack competitors such as Dfinity and Solana.  It’s one of the claims in the Crypto Leaks report.

Emin Gün Sirer, perhaps this legal filing will help refresh your memory

According to Page 18, Roche Freedman received +4M #AVAX from Ava Labs

As proportion #AVAX supply:
Feb 21 ~ 5%
Today ~ 1.75%

Lawsuit: https://t.co/nfTh5mt8a4@el33th4xor https://t.co/WaQwpZdq96

— Crypto Leaks (@CryptoLeaksInfo) August 29, 2022

According to the videos, the individual identified as Roche appears to have struck a deal with Ava Labs in September 2019 and was also the second person to obtain Ava Labs shares after Andreessen Horowitz.
Emin Gün Sirer, the CEO and founder of Ava Labs, used Twitter to respond on August 27 after several well-known crypto users picked it.

He stated that they would never act in an illegal, immoral, or simply wrong manner, as implied by these self-serving videos and incendiary articles. Although they denied the allegations, the news damages Avalanche’s reputation, and the report may negatively impact AVAX/USD.

Ava Labs CEO John Wu spoke with Bloomberg again on August 26. In the interview, he claims that the crypto industry’s fundamentals are strengthening despite a sharp drop in market value over the last year. He believes that many stablecoin holders in cryptocurrency are preparing to enter the market.

Wu claims that regardless of whether ETH and Bitcoin’s (BTC) risk correlation against the Nasdaq falls below 0.75. The Merge will provide alpha returns to Ethereum as it transitions to a proof-of-stake (PoS) consensus method. AVAX also employs a POS system.

WU claims that he believes the winter will last a long time. However, he is most excited about these new apps and protocols because they will alter how businesses create and operate. The IT executive concludes by discussing the end of the bear market and what comes next for the cryptocurrency industry.

These encouraging words from Wu regarding the cryptocurrency industry may help to mitigate the negative impact on the AVAX/USD. These positive remarks by Wu about the crypto market can lower the negative effect on the AVAX/USD.

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