DeFi Giant Undergoes Crisis in Altcoin! Founder Under Scrutiny Due to Acquisitions!

Recently, Aave (AAVE), an altcoin listed on Binance, has been in the spotlight for various reasons.

Chief among these reasons is the ongoing dispute within Aave management over control of the protocol’s brand and related assets. As the dispute continues, the community is divided between the DAO and Aave Labs.

The second reason was the large-scale purchases made by the founder of Aave.

While the control dispute between DAO and Aave Labs continues, Aave (AAVE) founder Stani Kulechov recently purchased AAVE for $10 million.

This acquisition attracted attention as the AAVE price fell amidst the controversy. It also further fueled the debate within the DeFi community regarding who should have control.

While Kulechov is under scrutiny over his AAVE acquisitions, critics allege that the founder’s purchases were made to increase his voting power in key governance proposals.

Although Stani Kulechov’s purchases were interpreted by investors as a signal of confidence, they were not enough to offset the widespread sell-off across the market.

Aave Management Controversy!

The proposal focuses on whether control of AAVE should lie with the DAO or Aave Labs. Those supporting DAO control argue that it would limit the unilateral control of a private company and ensure the Aave brand reflects a protocol managed and funded by token holders rather than a single developer.

Those who support Aave Labs having governance rights argue that taking brand control away from developers could slow development, complicate partnerships, and obscure accountability regarding the protocol’s implementation and promotion.