Ethereum Insider Steven Nerayoff has threatened to release more evidence on the alleged irregularities involving the network. His comment suggests that this evidence could have far-reaching consequences as it will expose “criminals on a magnitude that is unprecedented.”
Nerayoff Promises To Expose Criminals Posed As Altruists
Nerayoff stated in an X (formerly Twitter) post that he was soon going to unveil “data” that unmasks certain criminals that are currently posing as “altruists.” He noted that he had made good on his earlier promise of the recording. As such, the crypto community can also be certain that he will make good on this one, too.
It is uncertain who these “altruists” might be. However, Nerayoff could be alluding to Ethereum founders Vitalik Buterin and Joe Lubin, as he had earlier remarked that the duo were “carefully crafted” as “crypto saviors.” Meanwhile, Nerayoff, who was an active participant during Ethereum’s ICO, made further claims against the ETH ecosystem.
A “few players” are allegedly said to control the vast majority of Ether. The Ethereum insider alleged that these same persons have significant control of other cryptocurrencies, including the “majority of rug pulls, fraudulent ICOs and exploits.” Nerayoff also hinted that everything might not be as it seems as he says that “the whole game is rigged and controlled by these few.”
A former Ethereum core developer, Lane Rettig, had previously backed some of Nerayoff’s claims as he said that 70% of pre-mined ETH was immediately distributed. Then, Rettig seemed to be suggesting that a majority of the distributed ETH went to Etthereum’s founders or those closely associated with them.
Meanwhile, Nerayoff highlighted the fact that none of Ethereum’s founders or close associates have come out to refute his allegations. He suggested that they have chosen to remain silent because everything he has said so far is true.
ETH price falls to $2,200 | Source: ETHUSD on Tradingview.com
Nerayoff Comes For Ethereum Founder Vitalik Buterin
The Ethereum insider wasn’t done as he took a swipe at co-founder Vitalik Buterin. He labeled him as a “false altruist” and accused him of putting up a facade. Nerayoff also said that Buterin makes a lot of calculated financial decisions for someone who says he doesn’t care about the money.
His comments about Buterin also suggest that the Ethereum co-founder might be one of the criminals that he was referring to in his earlier remarks. Nerayoff even went as far as alleging that Vitalik controls the market.
One of Nerayoff’s boldest claims to date came in a subsequent post where he accused Vitalik of blowing “half the Ethereum ICO proceeds betting it all on the price of BTC.” The Ethereum co-founder went on to beg the Chinese government after this was done, Nerayoff claimed.
Featured image from Blockmanity, chart from Tradingview.com
The crypto market has been through a rollercoaster of a weekend. It follows on the back of bitcoin listing its footing above the $40,000 level last week, although the digital asset has done a good job holding above the $36,000 support level. However, it seems that the end of this bear trend may not be near given some recent chart action happening in the stock market. If this prediction comes to fruition, then the market may see more value shaved off its market cap soon.
A Dot Com-Like Crash?
Peter Brandt has recently posted a concerning chart that shows eerie similarities to the dot com crash of the early 2000s. Brandt is known for predicting the crypto market crash of 2018 and is a respected chartist in the space. Having proven to know his charts, his predictions have become quite popular among crypto investors.
Related Reading | TA: Bitcoin Consolidates Below $39k: What Could Trigger Another Decline
This is why Brandt posting a chart of the Nasdaq 100 that looks like that of the dot com chart right before the crash has worried investors. Basically, if this turns out to be like what happened in 2001, then the market may see a lot of stocks lose their value very quickly.
BTC recovers above $38,000 | Source: BTCUSD on TradingView.com
Now, it is important to note that the Nasdaq is trading at a significantly higher point than it did in the early 2000s. However, the recent market movements seem to closely mirror the movements recorded before the crash. Brandt has termed this deja vu with arrows pointing out the similar market patterns from both points in time.
“It’s Deja Vu all over again”
–Yogi Berra, late 20th Century American philosopher pic.twitter.com/aFch8sx1PA— Peter Brandt (@PeterLBrandt) April 21, 2022
How This Affects Crypto
As the crypto market has gotten bigger, the correlation with the stock market has risen drastically over the past few months. This has closely tied the movement of the stock market to that of the crypto market. What this means is that when the stock market goes up, so does the crypto market, and vice versa.
Therefore, a dot com magnitude crash in the stock market could have some dire implications for the crypto market. If stocks were to lose a significant portion of their value over a short period of time, the crypto market is likely to follow, leading to massive crashes across both large and small cryptocurrencies alike.
Related Reading | Bitcoin Struggles To Hold $40K While Crypto Track US Stocks
This does not fall far from Brandt’s prediction for the leading digital asset in the crypto market. Bitcoin which continues to face opposition at the $40,000 mark may decline to as low as $28,000 according to Brandt. This would be the completion of a bear channel, he added.
Regardless of whether a dot com-like burst is imminent or not, indicators for the crypto market are currently not favorable. With the market down almost 50% from its all-time high, there may be more downtrend to come as investor sentiment continues to shift into the negative.
Featured image from CNBC, chart from TradingView.com