Avalanche (AVAX) Hottest in the Crypto Community: Price Recovery Soon?
Interest in AVAX is the highest among cryptocurrencies following allegations of anti-competitive practices by Ava Labs, the company behind Avalanche. Serious claims against the company had a negative impact on the AVAX price, with a 17% drop on the existing price. However, the AVAX price rally was swift after the asset hit a 7-week low at one point. Crypto group CryptoLeaks accused Ava Labs of making a concerted effort to harm its competitors and avoid any form of regulation. The group claimed that the company’s anti-competitive practices meant trapping its rivals in lawsuits.
Propaganda against avalanches?
However, voices are rising against the claims, with some influencers calling the whole episode a piece of paid propaganda. Crypto influencer Cobie believes the revelation could be part of a propaganda campaign against Avalanche. Andrew T from Nansen AI believes that the perpetrators encouraged CryptoLeaks to create a narrative against the company.
Meanwhile, the price of AVAX has largely recovered from Monday’s drop after the disclosure broke. At one point, the cryptocurrency was trading around $17.60 before recovering to above $19. At the time of writing, the AVAX price stands at $19.10, up 5.88% in the last 24 hours, according to CoinMarketCap. This compares to the $19.77 range it maintained before the steep drop.
Social interest in AVAX Peaks before price recovery
When the news of the Avalanche exposure broke, the crypto community was quite interested to know what really happened. According to the findings of crypto market data provider Santiment, AVAX was in top rising theme in the crypto space. In fact, the cryptocurrency took a massive hit with its price hitting a 7-week low at one point.
“Avalanche is the top trending topic in #crypto following an allegation that the blockchain attempted to manipulate regulatory systems. After hitting a 7-week low about 9 hours ago, AVAX is up +7.5% since.
From reaching the lows thanks to the Cryptoleaks exposure, the AVAX price recovery was no longer than a few hours. Meanwhile, Miles Deutscher, a crypto investor, believed there was a need for more clarity on the matter. Much more clarity is still needed from the team on the nature of their legal representation, he said in a tweet.
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