Keeta Network Faces Backlash as $KTA Plunges Amid Fake Testnet Allegations

Allegations Rock Keeta Network’s Testnet Launch

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.

ZachXBT and Community Join the Critique

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.

• Critics argue the project is overvalued with little real development.
• Supporters insist the tech is real and the testnet serves only as a UI demo.

Keeta Responds with Google-Backed Stress Test

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:

• Livestreamed globally
• Verified by third-party monitor Chainspect.app
• Followed by an X Spaces session for community Q&A

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.

Is Keeta Compliant? SEC Filings Under Spotlight

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.

What’s Next for Keeta Network?

All eyes are on Keeta’s June 12 stress test, which could make or break the project. A successful demonstration may:

• Restore market confidence
• Validate its TPS claims
• Revive $KTA’s upward trajectory

But if the performance falls short, it may:

• Trigger further token dumps
• Invite regulatory scrutiny
• Damage long-term trust

Conclusion:

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.