Tron Network Founder Justin Sun Faces Potential Legal Action from Blockchain Startup Chain following Controversial Market Manipulation Accusations

Tron Network founder Justin Sun faces potential legal action from blockchain startup Chain following controversial market manipulation accusations.

Tron Network founder Justin Sun has accused blockchain startup Chain of engaging in market manipulation activities, specifically highlighting the high leverage employed by Chain. In response, Chain has refuted the allegations and announced plans to pursue legal actions against Sun for making false accusations.

According to a January 24 post on his Medium page, Sun directly challenged Chain, a company backed by Pantera Capital, which prompted an immediate response from the startup.

Tron Founder Accuses Chain of Market Manipulation

Justin Sun has called upon United States regulators to investigate Chain for allegedly manipulating the market. In his post, Sun planned to inform the United States regulators about the “illegal activities” of Chain and also tagged major cryptocurrency exchanges like Kraken, Bybit, and Coinbase, urging them to take necessary actions.

In response to Sun's call to action, Ben Zhou, the co-founder and CEO of Bybit, commented that Bybit's risk team is constantly monitoring for such manipulations.

However, the allegations did not sit well with the Chain team, and they quickly refuted the claims. For the sake of clarity, the blockchain firm noted that it is not actively involved in any trading of its associated token, XCN ($0.0242) $0.0242 24h volatility: 9.1% Market cap: $761.30 M Vol. 24h: $1.21 B , nor is it a part of any market manipulation, whether directly or indirectly. Chain explained to Medium community members that the token in question is managed by OnyxDAO.

On the basis of this alleged false accusation, Chain said it is exploring “legal remedies” against Sun. This ‘threat’ had no impact on the Tron Network founder, as he responded by tagging OnyxDAO.

He also called on the United States Securities and Exchange Commission (SEC) and the Department of Justice (DoJ) to look into the situation.

XCN Records 400% Surge in a Week

Interestingly, Sun made this move after Onyxcoin, the token in question, recorded a massive 149% increase in earlier trading. At the time, its 7-day price gain jumped as high, as 400%.

Till now, XCN price is still soaring, with traders obviously unperturbed by the ongoing discussions.

According to CoinMarketCap, the token is currently the 114th largest cryptocurrency by market cap, valued at $746.41 million. It is trading at $0.02424, corresponding with a 31.72% increase in the last 24 hours.

XCN’s trading volume has hit a 276.18% increase and jumped to $1.42 billion. This outlook suggests that investors and traders are still confident in the potential of the token.

TRX Struggles to Stay Relevant

While Sun is engaged in conversations about XCN, his token TRX ($0.25) $0.25 24h volatility: 1.0% Market cap: $21.92 B Vol. 24h: $944.06 M is struggling to stay afloat. Based on current market data, the coin is seeing a bullish ride but some market observers have concerns.

At a price level of $0.2588, many believe TRX is still consolidating and could be heading towards a bearish breakout.

On the other hand, Sun strongly believes that this is a good time to “buy the dip.” He highlighted that the network is highly undervalued, with developers currently working on expanding staking opportunities. The goal is to offer Tron holders rewards for participating in its decentralized governance.

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

Godfrey Benjamin on MediumMarco T. Lanz on Medium