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Keeta Network’s $KTA token drops 25% following accusations of a fake testnet. A Google-backed stress test on June 12 aims to address community concerns.
Author: Akshat Thakur
The Keeta Network, a Layer 1 blockchain claiming 10 million TPS capability, is under intense scrutiny after serious allegations surfaced about the authenticity of its testnet. The controversy erupted after Michael Ruzic, founder of DeFi Capital Markets, accused the network of faking its testnet operations—leading to a 25.9% crash in $KTA price on June 10, 2025.
Ruzic stated on X that the testnet’s explorer shows fabricated data, calling the whitepaper “AI slop” and raising doubts over its $1.6 billion valuation. He further claimed that swap functionalities are non-operational.
Crypto sleuth ZachXBT supported the allegations, suggesting that sketchy KOLs control token supply and marketing, creating concerns about a potential pump-and-dump. The situation quickly escalated, igniting a sharp divide within the crypto community.
In response to the growing doubts, Keeta Network announced a live stress test on June 12, developed in partnership with Google Cloud’s Spanner engineering team. The event will be:
The team maintains that the testnet is a controlled UI environment, not yet representative of the full network. A statement from the CTO clarified this distinction.
Supporters point to Keeta’s $17 million raise under SEC Regulation D Rule 504 as proof of legitimacy. However, critics argue the regulation requires minimal disclosure, offering little comfort in light of the current concerns.
All eyes are on Keeta’s June 12 stress test, which could make or break the project. A successful demonstration may:
But if the performance falls short, it may:
The Keeta Network controversy underscores how rapidly sentiment can shift in crypto. With serious doubts and major promises on the table, the upcoming stress test will be a defining moment. Whether Keeta rises as a next-gen Layer 1 or crumbles under pressure, June 12 will tell.
Stay tuned for live updates on the outcome.
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