Justin Sun Warns Investors against a Tron-based Defi Project after the Latter Allegedly Turned Him Down
The controversial Tron CEO Justin Sun has recently distanced himself and his company from a Defi project built on Tron called Oikos (OKS) and issued a warning to investors against participating in the project.
Sun explained that the Defi project was developed by Tron community members and has not been officially audited, adding that the project has nothing to do with him or any Tron official. He further urged investors to keep off the project for potential risks or hacking and he or Tron foundation would not be responsible for any loss encountered in the investment process.
The emerging Defi project OikoS has been popular among the Chinese crypto community of late. After its listing on Chinese crypto exchange Hoo.com upon Sun’s recommendation and later on exchange MXC, the price of Oikos’ OKS token surged almost four times in days.
When investors are enjoying the pleasure of the high returns, Justin Sun came out to clear his stance in relation to the project and warn investors of the risks in investing it. Following Sun’s accusation, the token tumbled over 30% in minutes.
Regarding his claims, OKS responded that it comes after their talks broke down, as Sun required them to do a 10 million OKS token sale on Poloniex at a low price of 0.025 USDT and the team turned him down.
The incident soon triggers heated discussions among the Chinese crypto community. Some comment goes that obviously the OKS project has upstaged Sun’s Defi project Just (JST) and he’s annoyed at it and thus asks for “protection money”.
Wang Ruixi, founder of crypto wallet and exchange Hoo.com also shows his discontent with Sun’s statement, saying that it is good for him to remind investors of the risks but it is too much considering the project is the first Defi project built on Tron.
There also some investors point out that the OKS project did have some vulnerability and it’s good for him to warn about it.
Since entering 2020, Defi has spiked in popularity and it’s becoming apparent with the performance of the sector’s leading tokens like COMP, Maker and BAL. Under this circumstance, a large number of projects under the name of Defi pop up and investors are eager to make fast money from it like the ICOs in its early days. Investors shall never be more cautious while investing in a project, and for platforms it is necessary to encourage new Defi projects and be responsible for its investors in the meanwhile.