Tron legitimized a project that spawned a scam, says community

Tron’s main DeFi project whitelisted what looks like a scam.

The Tron (TRX) community is accusing the Just Foundation of whitelisting a “DeFi project” that eventually became an exit scam, pocketing or stealing around $ 2 million in TRX tokens.

According to a post on the Tron subreddit, the foundation created a token whitelist for its Uniswap clone, JustSwap, to curb token instances and fraudulent projects.

The project in question, Tron Supernode, can still be found on the whitelist, although the website was completely disabled as the community reported that withdrawals were disabled.

According to the community, the project’s Telegram channels and social media accounts were shut down even before the website.

Most of the funds are still available in the DApp contract, but there seems to be a whitelist system that will only allow certain addresses to be withdrawn. Project users seem not to have access to their money.

The project raised a total locked value of $ 2 million in TRX before closing the store.

Some in the community said it was easy to see that the project was not legitimate. On DappRadar it was listed as “high risk”, a kind of euphemism used by the aggregator to indicate possible scams.

The Just Foundation manages DeFi on Tron, which mainly consists of Ethereum (ETH) projects transferred one by one to the Tron blockchain. Cointelegraph previously reported that Tronscan had launched a MakerDAO analog. The project was initially called Djed, but was later renamed Just.

The community is questioning the foundation’s research process, especially when it comes to smart contract analysis. Most DeFi scams can be avoided by analyzing the contract code, which will often feature some type of minting or whitelisting function only accessible to contract creators. Since Just Foundation is released by the team behind Tron’s block explorer, this shouldn’t have been a problem for them.

Representatives for the Tron and Just foundations did not immediately respond to Cointelegraph inquiries.

Investor mistrust grows when financial resources are not secure, it is possible that companies carry out all the investigations before listing any token that has doubts about the project under discussion, blockchain technology is transparent and is not made for the deception, the responsibility passes in the first place for the exchanges involved in the sale of tokens. It is expected for new notices.


Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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