Chain Protocol Team plans to file a lawsuit against Justin Sun for defamation

The threats of a lawsuit are looming between the Chain blockchain team and TRON founder Justin Sun, with accusations of market manipulation at the center of the conflict.

In response to Chain’s handling of the XCN token, Sun expressed concerns about potential harm to users of the protocol. He warned of market manipulation tactics involving high leverage and contracts that could negatively impact many users. Sun urged major exchanges to be vigilant about this risk and stated his intention to report Chain’s activities to regulatory authorities for investigation.

Following Sun’s remarks, the Chain developers swiftly refuted the allegations. They clarified that the team does not actively participate in XCN trading nor engage in any form of market manipulation, directly or indirectly. Emphasizing their commitment to transparency and integrity, the developers asserted that XCN is governed by OnyxDAO, not Chain.

In a subsequent post, Sun shifted the focus of his accusations towards the OnyxDAO protocol, further intensifying the dispute. The controversy erupted after the price of the XCN token surged by 149% within a single day and nearly 400% over the span of a week.

The clash between Chain and Justin Sun underscores the complexities and controversies inherent in the blockchain industry. As blockchain technology continues to evolve and gain prominence, issues related to governance, transparency, and market integrity are likely to surface. The handling of digital assets, such as the XCN token, requires a delicate balance of power and responsibility to safeguard the interests of users and maintain the credibility of blockchain platforms.

The ongoing feud between Chain and Justin Sun serves as a cautionary tale for participants in the blockchain ecosystem. It highlights the critical importance of ethical conduct, regulatory compliance, and adherence to best practices to ensure the sustainability and trustworthiness of blockchain projects. As the blockchain landscape undergoes further maturation and regulation, conflicts like these may become more frequent, underscoring the need for clear guidelines and mechanisms to address disputes and maintain the industry’s credibility.