No news is good news, they say. It Sounds Hard To Believe In The Crypto Industry, But Justin Sun May Be Feeling This Is After A… research by The Verge alleged that the founder of Tron tried to violate international laws and engaged in insider trading.
After Sun furiously refuted the claims, TRON . decided [TRX] took a hit and all eyes are now on the founder.
A TRON of controversy
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The lavishly designed deep dive of The Verge by Christopher Harland-Dunaway has made some serious allegations against Sun. Aside from possibly violating ICO bans in China and trying to evade SEC influence in the US, the piece is so-called that TRON was also in favor of falsifying KYC procedures for the Poloniex Exchange, owned by Sun. What’s more, a former employee claimed there were plans to pump TRX using whales.
Sun responded to the claims, calling them “false” and “fabricated stories.” He tweeted in defense of Poloniex’s reputation, accusing The Verge of defamation and hinting that he could take legal action.
(5/5) Since the WTO Amb. of Grenada, I strive to maintain the highest standard in my efforts in both the public and industrial domains. We reserve the right to pursue legal remedies against falsehoods alleged by entities. We are represented by Harder LLP as our legal counsel.
— HE Justin Sun 🅣🌞🇬🇩 (@justinsuntron) March 9, 2022
The ‘prize’ of journalism
While Tron’s TRX initially rallyed, it fell 5.17% in the past 24 hours and fell 3.37% in the past week. At the time of the press, TRX traded for $0.05868.
Meanwhile, weighted sentiment made it clear that the news hit readers hard. While March 8 saw euphoric highs of nearly seven, press time showed a vertical plunge into the sub-zero region. Weighted sentiment was around -0.087 at last count.
That said, it’s important not to overestimate the impact of The Verge’s feature. While development activity for Tron has fallen sharply since Feb. 28, it has started to pick up slowly and was still on its way up at the time of going to press. Investors may be feeling shocked right now, but for developers it seems like business as usual.
Will heads roll?
Given the troubled past of Poloniex Exchange, it is natural for investors to be skeptical. For his part, Poloniex responded to Sun’s claims that his KYC should be faked by quoting. † † Well, Sun himself.
The exchange also defended its security, although the piece pointed to alleged flaws in its records and KYC procedures.
“Poloniex has maintained the highest standard in protecting crypto assets for our customers with a proven track record without any major security breach over the past 8 years.”#cryptocurrency #crypto #Bitcoin #BTC https://t.co/qZLRZSeuH9
— Poloniex Exchange (@Poloniex) March 9, 2022
Reputations on the line
The Verge article highlighted one thing many investors are well aware of: Tron’s fall from the hyped “Ethereum killer” to the #24 largest cryptocurrency by Market capitalization at press time.
Furthermore, the article also took a closer look at Binance CEO Changpeng Zhao. It claimed that he warned Sun about the impending ICO ban in China so that the Tron founder could leave on time.