The Tron scam has raised suspicion in the minds of every crypto trader and enthusiast. So let’s learn a bit more about the fraud to get rid of the confusion.
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What is Tron?
Tron, also known as TRX, is a decentralized blockchain. It strives to be the most prominent blockchain system globally with its Tron protocol. TRX works to establish a global entertainment practice for online content with allocated storage technology. It allows the free and effortless exchange of digital content.
Their protocol attempts to cover and extend high availability, scalability, and computation to run decentralized apps with smart contracts. Furthermore, the Tron protocol doesn’t depend on mining but is managed by nodes situated across the globe. Thus, it is more apt for dapps that need a swift payment system, such as games.
TRX has already issued many tokens on its network and has launched itself in decentralized exchanges or markets. In addition, Tron also procured BitTorrent, known as one of the most significant P2P file-sharing protocols, back in July 24th, 2018.
It laid its cornerstone in September 2017 with the help of a non-profit organization named “The Tron Foundation”, situated in Singapore. Justin Sun is the CEO who led the way with a committed internal development team of well-known technological specialists.
Is Tron a Scam?
It is impossible to deem TRX a scam with the achievements and impressive history that it has scored. However, the aggressive reviews and rumors oppose its claim. With our investigators’ long hours spent on analysis, we’ve outlined some details about the Tron scam.
Just Foundation was accused of whitelisting a “Defi project” and, ultimately, pulling up an exit scam of around 2 million dollars in TRX tokens from the whole Tron (TRX) community. It all unfolded on the subreddit of Tron that is r/Tronix; the report said that the foundation was creating a token whitelist for its Uniswap clone, JustSwap, which was able to limit cases of fraudulent projects and tokens.
The project we are questioning here, “Tron Supernode,” is still evidently present on the whitelist. But the main suspicion is that the website was wholly shut down. Many members of the community were reporting that they were unable to withdraw, and withdrawals were disabled. Furthermore, according to many reports, the project closed down its social media accounts and Telegram channels before the website.
According to the majority of the official reports, the funds are sitting stagnant on the DApp’s contract, which is available on a whitelist system for public view. Moreover, the system will only let specific addresses withdraw. As a result, many of the project’s users appear to be locked out of their money. The project has collected a total value of 2 million dollars in TRX before closing the shop.
While Just Foundation made it look like a legitimate dealing, the sudden rage and distaste that it got from the affected individuals exposed them. The confusion only grew from this point as there were mixed opinions by its investors.
Is Tron Coin Legit or a Scam?
Although, there are plenty of people vouching that Tron is a scam. It all goes back to January 2018 where their projects were criticized for stealing protocols and white papers from others to create their own.
Looking past all the rumors, the Tron network has been going strong with its expanding community. In addition, it proves to be a secure and trusted provider for investors. The facts also confirm their sincerity. It’s more honest than a majority of the blockchains out there.
Their project currently has a market cap of approx $8 billion, linked with big names like Steemit and BitTorrent. They have also worked with Warren Buffet. It is pretty reliable!
Financial Fund Recovery has spotted that Just Foundation was the one to pull the scam, and it was effortless to see through them. A website named DappRadar had listed it as “High-Risk.” It is a prevalent indicator used by the website to point out scams.
The Just Foundation manages Defi on Tron, and Defi has many Ethereum (ETH) related projects ported one-to-one over to the Tron BlockChain. For example, if you go through a previous report of Cointelegraph, you shall see that Tronscan had launched a MakerDAO analog. The project was named Djed, but it later changed to Just.
The community has many questions about the foundation’s vetting process, the most important being it pertains to smart contract analysis. Financial Fund Recovery says that analyzing the contract code can avoid Defi scams. This code always features some minting or whitelisting feature only accessible to the contract’s creators. We understand that Just Foundation was launched by the team behind Tron’s block explorer. It should not have been an issue for them.
What to do if you have been a Victim of the Tron Scam?
If you’ve lost money in a Tron scam, don’t blame yourself for it. Instead, you can conveniently reach out to fund recovery experts and work on getting your money back. Financial Fund Recovery is the best at recovering money lost in a scam.
Financial Fund Recovery is a consultative and investigative body that works with a panel of specialists, researchers, detectives, and analysts. The team is efficient at what they do and conducts extensive investigations for each case to get every minute detail.
Our advanced software assists by classifying links between cryptocurrency addresses and entities. It aids in finding such criminals on the darknet, fiat on and off-ramps, and mixers.
We have helped recover money from Crypto, Forex, Binary, or other markets. For instance, we’ve supported scam victims from USI-tech scams, Avatrade scams, Bitcoin mining scams, and more. Our financial advisory has a win rate of 92%. We have clients spread over more than 22 countries. The process we use is transparent and latest.
Contact us for a free consultation now.