Tron TRX is a Scam!
So I was reading an article and it mentioned that Tron (TRX) was taking the lead in the Decentralized Web with a large number of transactions. I was not familiar with this crypto currency so I decided to do some research. It took about three hours. I found it to be a total Scam.
But during the first two hours looking over the site, reading articles, viewing you tube videos and more it looked really exciting. I was almost ready to download the wallet. I had a few questions lingering. There were a few odd things and then suddenly the bottom fell out. Brazilian Hair Extensions? What! Yep. I stumbled on the discussion board. It looked good with 40K messages. But these were all worthless, not related to crypto and was a dead giveway I was dealing with a fake crypto. An impressive scam. From there it was all downhill.
So lets take a look at this coin.
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It is #11 on Coin Market Cap. (Great placement)
It has 1.6 million transactions and 660,000 accounts. That is a lot of (fake) people.
There is a huge increase in transactions. About two million a day.
(Note the low periods... that is like 200 transactions likely the "real" activity... but ignore that )
And then there are all of these exciting DApps. Decentralized Apps are the next big thing!
Wow an exciting app store, with forward thinking crypto currencies...
(do we really need an app for trading astroid mining... dude, no. If we have an astroid to mine we need to get there first. They can sell it the old way, word of mouth or craigs list adds.)
Here is the founder in all his glory. This looks so awesome!
Look at the extensive team behind the project. It is a Chinese project.
Look at the exciting Discussion Board. There are over 40,000 Messages. People are excited and engaged in this project.
Oh my word this is the future decentralized internet!
Wait a minute, don't look too closely at the messages. They are filed under the wrong heading. There is no real content. And what does hair extensions have to do with anything?
You thought I was joking. I mean how many hair tips do we need?
Really? You think I need an app for this? Let alone a DAPP? This is not practical!
Here's another app. I don't read Chinese, but in the lower right had corner I know what 0 value in the last 30 days means! It is worthless. SCAM JOKE TRX IS A SCAM. TRON IS A SCAM.
All or most of this activity is a scam/gambling apps that roll dice.
This app has 2,700 people using it every day. It has 2.6 million transactions over the last 30 days.
This screen clarifies that all the activity in the gambling department!
Another "random" look at the message board.
Ok they are claiming 1,134 new account in the last 24 hours. Sure. But they are all fake. computer generated. This is not 1,124 real people.
And the coin hosts 1613 sub tokens...
ok but are they real tokens... lets look at one randomly.
This token was created. But not distributed. Effectively it is a fake token. So even the sub tokens are fake.
Yeah, I wasted a couple hours of my life. I got to reading and it all sounded so exciting and it all looked so good. Then I dove it. I looked other places. In the actually block chain activity. Just pick a couple of random transactions and see if they pass the smell test. They didn't. I believe the entire Tron TRX crypto project is a scam. They are trying to fake it till they make it. And well, that is not real value. That is not worth 1 billion dollars and that does not make them a worthwhile crypto project.
You are just one clueless trolling moron! Tron just launched their VM about two months ago and majority of their transactions so far are from 3 gambling dapps: tronbet, dicebet, trondice also their in wallet DEX (decentralized exchange) which trading about 12 tokens, totaling almost 2 million Tx daily. Yes the rest of the dapps on that screen just recently came on live and not being marketing yet to get more users. If you look at the EThereum dapps, there are 100+ while most of them also have 0 users and Tx and more importantly total Tx on the entire Eth network is around 500K daily. So are you calling ETH a scam coin also? How clueless can you be?
Tron is an open source blockchain so anyone can create dapps, games to run on their chain. Tron itself doesn't create any apps and all up to developers on their own to create dapps. So all of those tokens/dapps are from random people supporting the community.
It is true that many blockchains have lots of worthless or low worth transactions. That does not excuse the issue. I am glad to see the acknowledgement that it is mainly the three gambling apps producing the transactions. What excuse is there for all the fake people and fake messages. Look according to coin market cap this is suppose to be worth 1 billion dollars. That is doubtful.
The fact remains the numbers need to make sense. You need to have a fundamental purpose that is beneficial to society. If the chain is claiming 1,000 new people every day, are these real people? (Obviously not) What have they done? (rolled dice?) Have they contributed to the message board (no), are they finding the apps useful? (They don't exist) There are plenty of Websites that let you gamble or roll dice. Somewhere I saw about 3,000 address active in the last 24 hours. I am ok with Beta software, I am ok with slow launches, but upon close examination, this fails the test. When you claim something that is not true, it is a lie. 660K address are technically true, (aka computer generated) but lead people to think it is real people. That is a lie. 40K messages on the message board, might be technical true, they are their, but they are all "silly," (brazillian hair extensions?) Now this might be because the website is mean to fool people in Chinese, and they are not expected to read english well or look close at the content of the english website. I don't really know. I don't need to know. I know something smells rotten. I am calling it as I see it. There probably are a few people and some tech behind the website as things do work, but that tech is not worth the valuation. Those numbers are made up. It is what it is.
I was doing a little more research. You can have a working project, in crypto by copying someone else's code. So it can really work, but not be something new. There were allegations most of the white paper was plagiarized. Headlines that say they bought Bit Torrent are interesting. If you can raise money as a scam, and then buy a legitimate business; well that would be an interesting shift. This coin is bigger than many of the other coins I have looked at. The scope of the number of people following it, is substantial. This allows for huge coverage over a wide variety of the web. It does seem to be aimed at the Chinese. I can also say that two hours into my investigation, things were looking good. So I can understand why some people, all over the web, may have researched this offering and think it is good. Also, as all new software projects, is it truly a scam until it fails. It was one year ago I was looking at BitConnect calling it a scam and having people call me a hater. And Although many had called Bitconnect out, projects don't necessarily become scams until they fail.
This made my day:
So I was not exactly sure what the plan with BitTorrent was. Now I know, they are going to buy it, and then offer it up as a ICO. So great deal makers. Things like this happen on wall street all the time. Sometimes a company will buy two or three companies, put them together and sell them, other times companies will take a company and carve it up and then sell the pieces are worth more than the whole. Although I have not researched, I understand that BitTorrent actually has real value. (As in it is a real organization, with real people and real users and real servers.) Very interesting and potentially impressive move.
Another video Explaining the BitTorrent Thing.
I have been spending less time in the blockchain world recently. Tron announced that it has bought Steemit. A very interesting twist. Steemit, has not done well for a number of reasons, and tron buying them is an interesting and strategic move. Could be a smart one. If a large company that does not have a real project starts to buy up companies that have a real product, it could potentially ad value. Particularly, if it can place several of them together in a way that makes sense. One would hope someone thought about the synergies before such a move. I still stand by much of the research I did in this post, -which will probably be buried by some new algorithm update. I don't plan to follow any of this very closely. It really doesn't make that much difference to me.