Blockchain protocol Chain is weighing authorized motion towards TRON founder Justin Solar following allegations of market manipulation. On January 24, Solar accused Chain of partaking in actions that would hurt cryptocurrency trade customers, particularly referencing the usage of excessive leverage and contracts.
Solar posted on the platform X (previously Twitter), tagging main exchanges comparable to Coinbase, Kraken, Bybit, KuCoin, and HTX World, urging them to analyze Chain’s actions.
Chain Threatens Lawsuit Towards Justin Solar Over Market Manipulation Claims
Following a heated dialogue on X, Chain introduced its intent to pursue authorized motion towards Justin Solar. The dispute started when Solar claimed that Chain’s alleged actions posed dangers to crypto trade customers. He additionally said he would report Chain’s actions to the SEC and DOJ.
In response, Chain firmly denied the allegations. The corporate clarified that it’s not concerned in any buying and selling or manipulation of its XCN token. Chain additionally said that XCN is managed by OnyxDAO, not by Chain itself. The corporate emphasised its dedication to transparency and accountability whereas exploring authorized choices towards Solar.
Based in 2014, Chain has raised over $40 million from traders, together with Pantera Capital and Citigroup. The corporate has undergone vital developments, together with its acquisition by Stellar in 2018 and re-acquisition in 2020. Chain operates within the blockchain area with a give attention to advancing decentralized expertise.
Notably, the lawsuit risk emerged days after Justin Solar revealed a technique to increase ETH worth to $10,000 by halting ETH gross sales and taxing Layer 2 options.
Solar Tags Main Exchanges and Calls for Investigation
Justin Solar’s accusations have been amplified by tagging cryptocurrency exchanges in his put up. He known as on platforms like Coinbase, Kraken, and Bybit to analyze Chain’s actions. Solar warned of the alleged dangers related to excessive leverage and contracts utilized by Chain.
Chain’s response included a transparent assertion disassociating itself from the administration of the XCN token. The corporate reiterated that OnyxDAO manages XCN and denied any involvement in buying and selling or market manipulation.
The blockchain protocol tweeted,
“The Chain crew isn’t actively engaged in any buying and selling of XCN, nor concerned in any market manipulation instantly or not directly. We take these allegations extraordinarily significantly and are exploring authorized treatments towards Justin Solar.”
XCN Value Motion
This escalation occurred amidst a surge in XCN’s market worth. The token recorded a 149% worth improve in in the future and almost 400% over the week. Solar’s claims appeared to hyperlink this worth motion to alleged manipulation, additional intensifying the state of affairs.
At press time, Onyxcoin (XCN) is buying and selling at $0.0242, marking an increase of 32% over the previous 24 hours. The cryptocurrency has seen a rise in buying and selling quantity, up 273% to $1.42 billion, alongside a market capitalization that has grown to $745.24 million.
In the meantime, the Tron co-founder lately emphasised the safety benefits of Wrapped Bitcoin (WBTC) over Coinbase Wrapped BTC (CBBTC). Justin Solar critiqued Coinbase’s lack of a Proof of Reserves system, highlighting the danger of asset freezing.
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Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with 4 years {of professional} expertise, having contributed considerably to numerous media shops on cryptocurrency developments and applied sciences. With over 4000 revealed articles throughout numerous media shops, he goals to tell, educate and introduce extra individuals to the Blockchain and DeFi world. Exterior of his journalism profession, Ronny enjoys the joys of motorbike driving, exploring new trails and landscapes.
Disclaimer: The introduced content material might embrace the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability in your private monetary loss.
