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Tron’s TRX token is currently facing a loss of around 6.7% after what appears to be a police raid on the company’s offices, details of which are still scarce. Following this, a transfer amounting to roughly 675 million TRX was noted, leaving investors fearing for an incoming dump.
What’s going on?
As reported earlier today, TRON’s offices were allegedly raided by local Chinese officials, following reports of an exit scam from a suspected TRON affiliated Ponzi-scheme.
The group in question - known as the Wave Field Super Community – shares the same name as Tron trades by in China, Wave Field. The Wave Field Super Community recently shut down without any warning leaving thousands out of pocket to the tune of $30 million.
Defrauded customers apparently took to the Tron offices to protest, along with police, who, according to eyewitnesses, ware raiding the building.
Police raids at #Tron offices in Beijing? Additionally, there's many angry people gathered there who are saying things like "Tron is a scam". $trx #trx @justinsuntron pic.twitter.com/qFykQErQu6
— Hayden Otto (@haydenotto_) July 8, 2019
However, it appears that the police ‘raid’ may have instead been protection for the Tron offices against the hoards of angry investors.
Police are there to stop the angry mob outside most likely. Not to “raid” the TRON office.
— Bitcoin Birch 👨💻 (@BitcoinBirch) July 8, 2019
Dump incoming?
Following the commotion, a large transfer of 675 million TRX, amounting to approximately $22.7 million USD (at the time of writing) was spotted moving from unknown wallet to unknown wallet, with investors and speculators alike fearing the worst:
🚨 🚨 675,531,298 #TRX (23,582,727 USD) transferred from unknown wallet to unknown wallet
— Whale Alert (@whale_alert) July 8, 2019
Tx: https://t.co/krLL0Z4ZMh
Dump dump dump
— MrFlesh (@MrFlesh5) July 8, 2019
exit scamming lmao
— Tester (@RobustByzantine) July 8, 2019
Justin Dump
— Fibonacci_XRP (@CryptoClown11) July 8, 2019
The price of TRX appears to be taking a direct blow as a result of this latest scandal, with TRX dropping approximately 6.7% in the time following the “police raid.”
For now, TRX seems to be recovering slightly, citing a price of $0.034
TRX/USD Chart provided by Tradingview
Rumors and speculation
As of press time, neither the Tron foundation nor Justin Sun, CEO of Tron, have offered an explanation, or indeed distanced themselves from association with the Wave Field Super Community; something the community is taking as a red flag.
According to one user on Reddit, The Wave Field Super Community was using the derivative of Tron’s Chinese name in order to defraud customers, however, victims are still left wondering why Justin Sun hasn’t cleared up the confusion as yet.
Interestingly, another suggested that the Wave Field Super Community was actually a “super representative” of Tron’s, which would perhaps explain the silence from both Justin Sun and the Tron foundation.
Of course nothing is proven until the full story is relayed, either by officials, or Justin Sun and the Tron foundation; for now, speculation continues.
What do you think? Is Tron in on this Ponzi-scheme, are they simply guilty by association? Or is there something else going on? Let us know your thoughts in the comments below!