TRON dips on "Raid" FUD

Monday saw Tron's price take a tumble going from 308 sats to 279 sats (-9.4%) after videos of "police raiding the Tron's Beijing office" began circulating through the crypto space.

This also sparked an active discussion on Reddit to find out what exactly was happening.

Turns out that it wasn't the Chinese police raiding the Tron office but instead, police officers were called in by Tron to prevent the angry mob from entering the office and to keep things at bay.

Wave Field Super Community Ponzi scheme

So what really happened? The people seen cursing Tron in the videos are actually part of a group of people that has fallen victim into a Ponzi scheme that was claiming to be affiliated with Tron.

According to Decrypt.co,

In China, Tron is known by the name “Wave Field.” The scammers set up a site called “Wave Field Super Community” to tempt users into investing in the scheme, which promised big profits. Some members of the community asked Sun directly to clarify the relationship between the blockchain platform and the site. But he didn’t, which apparently left many to assume it was attached to the project, Chinese media reported.

This "Wave Field Super community" abruptly shut its doors last week and disappeared with at least around $30M from Chinese investors that took part in this scheme. Some victims have also alleged that Tron benefited from the ponzi scheme as it saw buying buying TRX to invest in it, boosting Tron's liquidity.

While many lost their money in this ponzi scheme, it appears that one woman committed suicide over it.

Crowd's reactions:

• why the fuck would he not confirm its a scam??
• shady as fuck.
• China hustla. Where lives don't matter and literally everything is retarded for the sake of taking advantage of people and getting rich.
• he didn't know that this ponzi wasn't one of his 27 partners? ok.
• Dang boyyyy..warren buffet about to cancel that lunch date.

Tron's response

During this time, the crowd was getting increasing frustrated and looking for an official response from Tron to clarify their association with the said "Wave Field Super Community". However the Tron foundation remained rather quiet throughout most of the day but eventually broke its silence with a blog post addressing the incident.

Get rich quick? Think again.

Perhaps this is also good reminder for everyone in the crypto space or looking to enter. That do not ever ever ever invest more than you can lose (consider everything goes to $0). And if something looks too good to be true, it probably is. Scams are rampant in this space, preying on the greed of others. It's all fun and games until someone is left holding the hot potato. Don't be that person.

Stay safe out there folks.