Keeta Plummets on Accusations of 'Completely Fake' Testnet

Layer 1 blockchain Keeta Network is facing uncertainty after observers slammed the project shortly after it reached an all-time high valuation, driving its token price down by more than 20%.

Keeta’s KTA token hit an all-time high of $1.7 this morning, but fell as much as 24% after Michael Ruzic, the founder of DeFi Capital Markets, called Keeta’s testnet “completely fake,” and onchain sleuth ZachXBT said the token supply is controlled by “sketchy KOLS.”

Ruzic said, “I am likely the first person ever to go on the Keeta testnet. TLDR it’s completely fake. The explorer is a Vercel vibe-coded page posting fake transaction data. Swaps don't work…Whitepaper is AI slop. Same for the docs. Not going to even bother trying the SDK.”

ZachXBT replied, “When the biggest shills for a project come from sketchy KOLs vs actual builders for a project, it typically means the tech is underwhelming. Nonetheless, the supply control by them has so far been impressive.”

Keeta founder Ty Schenk responded to Ruzic, saying, “Your tweet is completely false and unfair to the work we do. Regardless, I’m happy to make some time if you would like to have a call and ask questions of Roy or myself.”

Keeta will be hosting one of its regular X Spaces later today to discuss a recent partnership and network developments.

Keeta Network is a Layer 1 blockchain focused on small-scale cross-border payments, aiming to compete with traditional financial infrastructure like SWIFT. Notably, the blockchain is backed by Eric Schmidt, the former CEO of Google and the 56th richest man in the world.

After a slow start, Keeta exploded in May and is up 1000% since May 1, driven by increased attention due to its rising valuation, the launch of its testnet, and some minor centralized exchange (CEX) listings. The token, which launched at a $5 million market capitalization, now boasts a $520 million market capitalization and a fully diluted valuation of $1.35 billion.

Updated on 6/11 to include Ty Schenk's response.