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- The founder of DigiByte, Jared Tate, has criticized Justin Sun and his cryptocurrency TRON (TRX) very hard.
- Probably as a result, Poloniex, a exchange co-financed by Sun, has announced that it will remove DigiByte (DGB) from its exchange.
Over the last few days, DigiByte founder Jared Tate has led a Twitter crusade against Justin Sun and his cryptocurrency TRON and against the crypto exchange Binance. Tate described TRON as a fully centralized and artificially hyped project based on copied code. Tate has been punished for this. Poloniex, in which Sun recently invested, has announced the delisting of DigiByte (DGB) without further warning.
TRON is pure marketing hype
Yesterday DigiByte founder Tate dropped a series of tweets in which he strongly criticized TRON. Many of the accusations Tate named, however, are not new. TRON has already been confronted with these accusations in the past. However, the project has not suffered any real damage by this.
According to Tate, TRON operates a fraudulent business that deceives its customers by calling itself a decentralized platform, while Tate claims that it is by no means decentralized. Tate explained in his tweets that TRON (TRX) is 100% premined and centrally controlled. 100 billion TRX were created by Justin Sun and the Tron Foundation, but only 66 billion TRX were distributed. The remaining 34 billion TRXs are controlled by Sun, which demonstrates the centralization of the project, according to Tate.
He further claims that the project is so strongly controlled by Sun that the former CTO Lucien Chen felt the urge to distance himself from an overly controlled network. Sun controls everything at TRON, as Chen said:
Token distribution is centralized, Super Representatives are centralized, code development is centralized. Even the community is organized under centralization.” This is typical for DPoS projects, we call it “delighted proof of shenanigans”.
Tate called TRON a “decentralization theater” and also referred to an analysis by Brian Fabin Crain, CEO of proof-of-stake blockchain service provider Chrous One, who stated that 56 percent of the voting rights in the Tron network are under the control of Binance. According to this, Binance and Sun could theoretically control 25 out of 27 Super Representatives if they distribute their votes accordingly.
Tate also referred to accusations of plagiarism on the TRON whitepapers and described the project as a pure marketing hype:
Nothing about Tron is unique other than a few gambling apps and the marketing hype and paid Twitter bots. They even copied most of the whitepaper. With a 100% premine you can afford to pay reporters, listing fees & market makers to wash trade for you.
The DigiByte founder concluded by saying that Tron is the most blatant scam he has ever seen after diving into hundreds of projects and blockchain protocols.
Justin Sun’s revenge for the tweets by Tate?
A little later, without further warning, Poloniex revealed that it would delist DigiByte for non-compliance with the standards of the exchange. The exchange claimed in a tweet that it “decided this after careful review”.
By not qualified you mean #DigiByte is truly decentralized, was never an ICO and isnt 100% premined? Duly noted. #Poloniex is the new scammers paradise. The less $DGB in the possesion of the #TRON con job the better. https://t.co/unhsiZjzn5
— Jared Tate ©️ (@jaredctate) December 5, 2019
Whether the decision was really based on a “careful review” or was decided on the spot following a call from Justin Sun cannot, of course, be proven. In any case, the decision has a bitter aftertaste as it was made a few hours after the tweet storm of DigiByte founder Jared Tate.
After Circle retired from Poloniex in October of this year, the exchange needed new funding. Financing was found by an Asian group of investors, including Justin Sun. Since then, the exchange has listed TRX, acquired a decentralized exchange based on the Tron blockchain and made various promotions for TRON (TRX). Just yesterday Poloniex announced that it will list all TRON based projects on its trading platform.
We @Poloniex are considering listing more assets from @PoloniDEX in the future. @PoloniDEX would love to offer free listing to all #TRON based assets!
— Poloniex Exchange (@Poloniex) December 3, 2019
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