Following the filing of an Exchange Traded Fund (ETF) by investment giant BlackRock (NYSE:), the cryptocurrency market witnessed a significant uptick in Ethereum’s native token, ETH, which soared past the $2,000 mark. This rally, occurring on Thursday, sparked discussions about the potential onset of an altcoin season, as traders and investors rallied around the second-largest cryptocurrency by market capitalization.
The surge in ETH price coincided with a marked increase in Ethereum’s network activity. On Friday, Eric Smith from 401 Financials highlighted that Ethereum’s daily revenue reached a notable high of $10 million for the first time since July. This milestone was indicative of heightened network usage and was accompanied by a rise in the average gas price to levels not seen in over a month.
However, the week ended with a twist as Steven Nerayoff, an early Ethereum advisor, made serious allegations against Ethereum co-founders Vitalik Buterin and Joseph Lubin. On Saturday, Nerayoff accused them of fraudulent activities during Ethereum’s formative years and criticized the U.S. Securities and Exchange Commission (SEC) for alleged corruption in its dealings with Ethereum.
Nerayoff likened these purported early misdeeds to the FTX scandal and announced his intention to release a recorded conversation with Buterin as a free NFT and transcript. This recording is said to contain evidence that challenges the narrative of Ethereum’s decentralization at its inception—a key factor in the SEC’s decision not to classify ETH as a security.
The allegations have stirred investor concerns and prompted questions regarding the SEC’s treatment of different cryptocurrencies. The community, in particular, has taken notice of these inconsistencies. While specific details or laws broken have not been shared by Nerayoff, he suggests that his conversation with Buterin includes proof that undermines confidence in Ethereum’s foundational principles.
Despite the gravity of these claims and their potential implications for legal action against Ethereum’s founders, Nerayoff deferred to the SEC and Department of Justice (DOJ) regarding any criminal charges. As the crypto community anticipates the release of Nerayoff’s recording, it remains to be seen how these allegations will affect Ethereum’s market performance and investor sentiment moving forward.
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