Tron and EOS- Scams or the Future?
In the cryptocurrency world, there is no shortage of scams, controversies, and over-exaggerations. Sometimes it’s even difficult to distinguish the good coins from the bad, so it’s important to look for subtle clues along the way. A few of the signs that should signal a red flag include evidence of money laundering, developers who are seemingly obsessed with the coins current price, as well as promises that sound too good to be true.
Unfortunately, two of crypto’s top coins by market capitalization fit this criteria. As the title implies, these coins are Tron and EOS, both of which have had, or plan to have “mainet” launches in the coming days.’ Its imperative people take a closer look at the fundamental side of these coins before making any decisions about an investment.
Tron is not only the most controversial coin in cryptocurrency, but also the most polarizing. People who believe in Tron, tend to believe in it so strongly that they become maximalists, while those who do not believe in it go so far as to say it’s the next BitConnect scam. We do not hold either of these extreme beliefs, however; we do believe that Tron shows all signs of a marketing scheme.
First and foremost, Tron’s white paper was plagiarized by pulling pieces of other coins white paper’s together. There is no ifs ands or buts about it, the white paper was plagiarized. In fact, Tron creator and chief developer Justin Sun did not even deny these claims, but instead claimed that it was due to a “translation error”. So that begs the question of, if these developers are really the best in the world as stated, why could they not develop there own unique white paper?
Secondly, Justin Sun seems rather pre-occupied, some might even say obsessed with the current price of his coin. This includes live tweeting as the coin is pumping and moving up on Coinmarketcap in ranks. In cryptocurrency, time and time again it has been proven that the best projects have developers that do not care about the price of their coin. This makes sense, because if developers truly thought their coin was the future of the world, they would know that it matters not about the current price, because in the future their coin will be worth far more anyways.
Also important to note is that the Tron team has made some outlandish claims about the coins capabilities. One claim, even went so far as to say that Tron could complete ten-thousand transactions per second. To put this into perspective, most cryptocurrencies are in the 10-30 transactions per second range. With Bitcoin at 7. If ten-thousand transactions per second was actually currently possible, we find it highly unlikely that the small in comparison Tron team would figure out how to do it before more well established teams, such as the Ethereum or Ripple. The Tron team has thus far shown no proof what so ever that there coin can do anything even relatively close to what they say it can do, even after their mainet launch.
EOS seems to be more along the lines of your typical cryptocurrency scam. EOS is generally not quite as controversial as Tron, due to the obvious manipulation that seems to be going on. While there are still some that ping EOS as the “next generation blockchain” many people in the community seem to be at a consensus that it’s little more than a scheme.
To start off, it’s important to highlight the clear manipulation that has taken place with the coins price. There is a DIRECT correlation between many of EOS’s strongest pumps, and Ether from its ICO being moved out of their own wallet and into their Bitfinex exchange wallet. Many speculate that EOS has used their ETH to pump their own coin price up.
EOS has also self proclaimed itself as the “Ethereum Killer”. They say that they will use all of their Ether gathered from its initial coin offering to dump the price of Ether so hard that EOS will overtake it. For starters, Ethereum’s market capitalization is currently at around 60 billion. The amount of ETH that EOS actually has is completely minuscule to the amount in circulation. EOS could not permanently crash the price of Ether if it wanted to. This is a false claim. The main problem with this is that, if EOS was truly superior to other platform coins such as Ethereum, why does it need to crash the price of the other to over take it? Its technological superiority and adoption should in theory eventually cause it to overtake Ethereum anyways.
There is also the issue of money laundering. EOS shuffles their ETH through many different wallets, to the point that it becomes untraceable. One way in which they were caught doing this is that they shuffled there own ETH into their uncapped ICO. Many believe EOS was created for the sole purpose of being a money laundering scheme.
Also important is that EOS’s main developer has a history of starting projects and not finishing them. This is evident in the coin called Bit-Shares. The developer made huge claims and promises for the coin, but in the end abandoned it with a profit. This is EXTRA concerning, because multiple times, they have stated that once the coin’s mainet is launched they will be “turning it over to the community for development”.
Speaking of the coins Mainet, it originally was going to be pushed back due to “critical flaws found in its security”. EOS said in a tweet: “Help us find critical bugs in EOSIO before our 1.0 release. $10K for every unique bug that can cause a crash, privilege escalation, or non-deterministic behavior in smart contracts. Offer subject to change, ID required, validity decided at the sole discretion of Block One.” This is extremely alarming because if this team was truly capable of creating a next generation blockchain, they would probably be able to find the bugs themselves. Litecoin creator Charlie Lee weighed in on this and said that there are critical flaws in the code.
And lastly, similar to Tron, EOS has shown zero evidence what so ever that their coin can do what they say it can. To this day, it is still a useless erc-20 token.
In the end, if something in the cryptocurrency world seems way to good to be true, it probably is. Although we do believe that certain coins will eventually make the massive claims of Tron and EOS a reality, we do not believe that any coin is there yet.
Disclaimer: Nothing written in this or any other article on our website should be taken as financial or legal advice. Therefore, we cannot be held liable for any investments you make. Investing in cryptocurrencies is highly speculative, and you should never invest more than you are prepared to lose. This article is an opinion piece, written based only on the views of the author.
Written by Jack Baker