Keeta Project's Crisis of Confidence Triggers a Big Dump of Tokens, Controversy Surrounding Investment by Former Google Executive Emerges

Recently, the highly watched project Keeta on the Base chain has suffered a heavy blow, with its token $KTA falling by 20% within 24 hours. This big dump was triggered by a comment on social media that questioned the authenticity of the Keeta testnet, pointing out that the project's block explorer might be fake, the trading function is unusable, and the quality of the white paper and documentation is poor.

More influential on-chain analysts then joined the discussion, pointing out that when a project is primarily promoted by internet celebrities of unknown background rather than actual developers, it often indicates a lack of technical strength. He also criticized the practice of issuing tokens and charging high fees before the product is released, believing that such behavior is unreasonable and ridiculous.

In the face of skepticism, Keeta officially announced that it will conduct a live test on June 12, claiming to verify its capability of processing 10 million transactions per second. However, this announcement seems to have failed to completely quell market concerns.

Keeta attracted attention for receiving an investment of up to $17 million, with investors including the former CEO of a well-known tech company and the incubator platform he founded. However, the story behind this investment raised more questions.

The relationship between the founder of the incubator platform and the former CEO has become the focus. According to reports, the two met in 2020, and the young law school graduate quickly established the company with the other's funding and network support. However, this relationship seems to have shown signs of strain in the second half of 2023.

The incubator company faces numerous issues during its operations. According to internal documents, the company has about 90 employees with an annual salary expenditure of up to 16 million USD, averaging over 300,000 USD per person. Furthermore, the company has rented expensive offices in New York and Los Angeles. However, despite the enormous expenses, the company's revenue is negligible.

As the relationship between the two deteriorated, the company's financial support gradually decreased. At the beginning of 2024, the company's executives sought additional funding but were denied, citing that business progress did not meet the standards.

Currently, Keeta's official channels have not mentioned any investment relationship with the former CEO and his incubator platform. Community members point out that Keeta's pump times are often concentrated on weekends with lower liquidity, and it has yet to be listed on mainstream trading platforms, which has raised questions about price manipulation.

Besides Keeta, other projects invested by the incubator platform, such as decentralized dark pool trading protocols, Web3 privacy infrastructure, AI companies, etc., seem to have ceased operations.

Despite numerous doubts, the price of $KTA remains in a state of overvaluation. However, if the upcoming performance test fails to be completed as scheduled or truthfully, the Keeta project may face a more severe Crisis of Confidence.