Cryptocurrency is unregulated in most parts of the world. Hence it is in the hands of community to sniff out the scams and call them out in the open. We’ve seen that happen many times. From the discovery of Beetoken scam, Giza Scam to Mt Gox Trustee’s selling large amounts of Bitcoins, the community watches it all.
A popular telegram channel Blockchain Whispers that provides Crypto signals has uncovered another possible scam. Yesterday a message from Blockchain Whispers started doing rounds in different telegram communities. BW is claiming to have found an account that allegedly belongs to Justin Sun, the CEO of Tron, and how he is manipulating the market to increase volumes.
Some shocking allegations have been made against TRON in the said message, a part of which says
there has been a market maker who at one instance posessed 7.5 billion Tron (> 10% of total circulating supply in one wallet!) He purchased this between end of Nov till mid Dec. Since then, the wallet has only been selling and has never (!) purchased Tron again, not even when it was at 0.025$ last week.
The message continues
At every breakout, he sold more to get the price back down. The rate was very slow in February (30M / day sold) but that all changed when Tron was listed on Bittrex: in a few days, he sold 2 billion Tron and since then, the average rate has jumped to 140M / day average for March.
And the final anticipation is that the MM (market maker) will sell off everything before the TestNet launch.
The BW message then turns this message into a signal telling us -to wait out the selling and then buy the dip, to make 40% profit.
They insists us to do our own research on the account 0xB287a379e6caCa6732E50b88D23c290aA990A892, so we did it.
Are they really selling 140 Million Tokens everyday?
No. Around 140 Million TRX are being sent out daily, but sending out doesn’t mean selling. We went through multiple accounts and saw that even when over 500k TRX tokens were transferred to them, many of those accounts still hold majority of the liquidity.
However, a lot the high volumes transactions are ending up in this address: 0x03747f06215b44e498831da019b27f53e483599f
The new address then sends some of these tokens to Bittrex and possibly sells them off. Hence, some of tokens gets sold off while some are still being held in these accounts. So not all 140 Million tokens are sold everyday.
Who does this Account belong to?
The account has been active for almost a year now. Blockchain Whispers believe the account belongs to Justin Sun. We beg to differ. The account definitely belongs to a big whale who can manipulate markets. We do not deny that. But for almost a year this account has been accumulating huge number of tokens and sending them out.
Not only TRON (TRX), they have done the same with Kyber Network (KNC), STORM, Omisego (OMG), QTUM, MONACO and many more.
I don’t think Justin Sun has been busy manipulating all these markets. Again, we are betting on probability, as there is no definite way to find out who this account belongs to.
So why did Blockchain Whispers conclude Justin Sun is the MM?
If you were to look at the account right now, you’d believe this account holder is surely selling off the TRX tokens. To an extent they are. Possibly for the same reason that BW is suspecting – get the price down, increase the volumes, create a hype ahead of the Testnet launch.
The sinister motive though could be of anyone – a group, an individual or even Justin Sun or BW themselves. At the end of the day, we know that it can drive the traction and make money for them. The accounts have been buying and selling huge quantities since a year. It’s not TRON exclusive.
If you blame it on Justin Sun, the CEO of Tron, the message is more likely to get more traction and it did. The message was forwarded to hundreds of thousands of people. If I were to tell you that Justin Sun is selling his TRX vs some whale is selling his TRX, which one would make you more interested?
BW claims you can make upto 40% profit by just buying the dip. That may as well be true. So keep an eye on this account and the other one that we found, and decide for yourself.
Blockchain Whispers: 0xB287a379e6caCa6732E50b88D23c290aA990A892
The goal of the TRON protocol is to construct a global free content entertainment using the blockchain technology to the fullest. Founded in 2017, Tron will help the users freely publish, store and own data. Entertainment is of many form, TRON focuses on having a decentralised content entertainment ecosystem. You can read more about TRON here
TRX is available in Indian as well International exchanges like Koinex, Bitbns, Binance, Bittrex, etc.
Update: Changed the Cover pic