Is Tron A Scam? ☢ Shocking TRX Crypto Data!

Summary

The video script discusses a critical analysis of the Tron blockchain, revealing over $5 billion in value that appears to be baseless, with the majority attributed to wrapped Bitcoin on the JustLend platform. The presenter questions the legitimacy of Tron's value, suggesting artificial inflation and potential manipulation. With a low active user base and transaction volume, the presenter expresses concern over the network's true value and plans to short Tron, anticipating a significant price drop.

Takeaways

• 😮 The Tron blockchain has over $5 billion in value that the speaker considers to be illegitimate and possibly 'created out of thin air'.
• 🤔 The speaker is skeptical about the legitimacy of Tron's value, suggesting that the network's usage does not justify the high total value locked (TVL).
• 🔍 Tron is the second largest blockchain in terms of TVL, yet it has fewer active applications and user engagement compared to other blockchains like Solana.
• 📈 Despite the speaker's concerns, the price of Tron (TRX) has increased by more than 60% in the year, seemingly unaffected by these issues.
• 💰 The majority of Tron's value is concentrated in a single platform called JustLend, with $5.6 billion, mostly in wrapped Bitcoin.
• 🤨 The speaker finds it odd that such a large amount of Bitcoin is deposited on JustLend with an extremely low yield of less than 0.01%.
• 🏦 The top 10 holders control 99.78% of all Bitcoin on Tron, with the majority in the JustLend smart contract, raising questions about asset distribution.
• 🕵️‍♂️ The speaker investigates the source of Bitcoin on Tron and finds that the creator of the Bitcoin token on Tron issued tokens without any proof of backing.
• 💡 The issuance function of the Bitcoin smart contract on Tron allows the owner to create and transfer Bitcoin tokens at will, which the speaker sees as a red flag.
• 📊 The speaker highlights that the Bitcoin token's smart contract has issued a significant amount of Bitcoin, inflating the Tron blockchain's value.
• 🚫 The speaker concludes that the Tron blockchain's value is artificially inflated and plans to open a short position on Tron, anticipating a price drop.

Q & A

What was the main finding of the analysis on the Tron blockchain?

The analysis revealed that more than $5 billion worth of value on the Tron network appears to be 'trust me bro' money, with a significant amount of it being wrapped Bitcoin that seems to have been issued out of nowhere.

Why is the legitimacy of the value on the Tron network questioned in the script?

The legitimacy is questioned due to the high amount of value locked on the network compared to the relatively low number of active applications and users, suggesting that the value might be artificially inflated.

What is the significance of the number of addresses on Tron being more than double the number on Solana?

This is significant because it raises questions about the authenticity of the user activity on Tron, especially when considering that the number of active applications on Tron is much lower than on Solana.

What does the script suggest about the total value locked on the Tron blockchain?

The script suggests that the total value locked on the Tron blockchain, which seems to be growing massively, might be artificial and not reflective of genuine activity.

What concerns does the script raise about the number of active addresses on Tron?

The script raises concerns that the rapid growth in the number of active addresses on Tron might not be organic, especially when transaction volume has remained relatively flat over the last four years.

What role does the platform 'Just Lend' play in the concerns raised about the Tron blockchain?

Just Lend is highlighted as a platform where the majority of Tron's value is concentrated, with $5.6 billion, mostly in Bitcoin, being deposited despite the yield for deposits being less than 0.01%, which raises suspicion about the legitimacy of the funds.

Why is the distribution of Bitcoin holdings among the top 10 holders on Tron a red flag according to the script?

The fact that 99.78% of all Bitcoin on Tron is held by the top 10 holders is a red flag because it indicates a highly centralized and potentially manipulated market.

What is the relationship between Huobi exchange and the Tron network as mentioned in the script?

The script mentions that Huobi exchange, where Justin Sun, the founder of Tron, has a close affiliation, is the second-largest holder of Bitcoin on the Tron network, raising questions about the legitimacy of the assets held there.

What does the script suggest about the smart contract of the Bitcoin token on the Tron network?

The script suggests that the smart contract allows the owner to issue Bitcoin tokens without any proof or backing, which could lead to the creation of 'trust me bro' money.

What action does the author of the script intend to take based on their findings?

The author intends to open a short position on the Tron price, betting on falling prices, due to their belief that the Tron blockchain is not fully backed and that the market is not aware of the inflated value.