Following the filing of an Ethereum exchange traded fund (ETF) by investment giant BlackRock (NYSE:BLK), the cryptocurrency market witnessed a significant surge in Ethereum’s native token, ETH, which surged past the $2,000 mark. This rally, which took place on Thursday, sparked discussions about the potential onset of an altcoin season, as traders and investors flocked to the second largest cryptocurrency by market capitalization.
The ETH price spike coincided with a significant increase in Ethereum network activity. On Friday, Eric Smith of 401 Financials highlighted that Ethereum’s daily revenue reached a remarkable high of $10 million for the first time since July. This milestone was indicative of increased 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 compared these alleged 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 raised investor concerns and questions about the SEC’s treatment of various cryptocurrencies. The XRP community in particular has taken note of these inconsistencies. While specific details or laws broken have not been shared by Nerayoff, he suggests that his conversation with Buterin contains evidence that undermines confidence in Ethereum’s founding principles.
Despite the seriousness of these allegations and their potential implications for legal action against Ethereum’s founders, Nerayoff deferred to the SEC and the Department of Justice (DOJ) regarding any criminal charges. As the crypto community awaits the release of Nerayoff’s recording, it remains to be seen how these allegations will affect Ethereum’s market performance and investor sentiment going forward.
