January 27, 2020

Justin Sun: a Successful Founder or Crypto Scammer?

From the moment of its appearance, the Tron platform and its founder Justin Sun have occupied a considerable place in the news agenda of the entire cryptocurrency industry. This happens both for completely justified reasons, such as major technological releases or significant acquisitions, and for more controversial reasons, which are clearly not lacking around the figure of a Chinese entrepreneur.

Nevertheless, even if Justin Sun himself does not say this out loud, there may be something more behind. The recent multimillion-dollar purchases of technology startups than it seems at first glance and a more careful analysis of the business empire he is building suggests quite exciting theories.

The Tron Project

Tron, or Las Vegas on the blockchain, as it was dubbed in the DappReview analytics report mentioned above, was announced as an open-source protocol designed to deploy a decentralized ecosystem of applications and content for entertainment. For placement or sale of content on the network, a reward is supposed to be in the native cryptocurrency of the project – Tronix (TRX), and the platform itself is compatible with blockchains and smart contracts of other projects.

The Tron fundraising campaign, during which 40% of the estimated TRX token issue was offered for sale in the amount of 100 billion, lasted only three days (from August 31 to September 2, 2017) and without any problems reached the goal of $ 70 million. The completion almost coincided with the ban on ICOs introduced in China, after which many cryptocurrency companies moved their activities to other countries. In the case of Tron, it turned out to be the United States of America – the last two and a half years the project has been managed from San Francisco.

Initially, the platform worked on the Ethereum blockchain in the form of ERC-20 standard tokens, starting the migration to the main network of its blockchain on May 31, 2018. Unlike Ethereum, where, according to Justin Sun, “miners fight with developers,” Tron uses a consensus algorithm based on the delegated proof of stake (Delegated Proof of Stake), that is, the separation of functions of coin holders with voting rights and transaction validators is implemented.

The Master of Media Scandals

Justin is always on focus when it comes to social media scandals. He had few with famous crypto influencers and developers. For instance, Vitalik Buterin couldn’t miss a chance to poke Justin when he announced the launch of Tron. 

The Ethereum founder tried to remember once again that Tron’s white paper is reminding the community copy-pasted version of other projects, without any references. However, Justin explained this in his tweet to one user.

The story of the failed lunch with billionaire Warren Buffett made a lot of noise last summer. Then Sun paid at a charity auction for a traditional annual dinner with a legendary investor a record $ 4,567,888.

CEO Circle Jeremy Allair, Litecoin creator Charlie Lee, head of the eToro investment platform Yoni Assiya and representative of the Huobi exchange Chris Lee agreed to join him. Still, two days before the scheduled lunch, the Tron Foundation unexpectedly announced its transfer. Sun’s health problems were cited as the official reason, although some Chinese media claimed that the founder of Tron was under investigation and could not leave China.

The Prospects of Tron in the Cryptocurrency Industry

The founder of Tron expressed many times that his project is going to be decisive for the whole industry. Nevertheless, some members of the crypto community raise concerns regarding the success of the project. Sooner or later, Justin Sun and the Tron Foundation will fall into the spotlight of the US Securities and Exchange Commission (SEC) or other financial regulators. At the same time, despite the inconsistency of the figure of a Chinese entrepreneur and the features of his chosen policy of promoting business.

Currently, the project is at the second stage of Odyssey, dedicated to the deployment of a community of creators of entertainment content. The third and fourth phases (Great Voyage and Apollo) will be associated with the launch of new tokens by participating projects and a personal ICO. The fifth phase (Star Trek) will begin with the launch of a decentralized platform for games and market predictions. The final stage (Eternity) will address issues of fundraising and monetization of projects on the platform. 

The question is still open – can Justin and his project surprise the crypto community? We will follow his actions to find out what will happen.

Disclaimer

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.

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