Chain Vows to Sue Justin Sun Over Onyxcoin (XCN) Market Manipulation Claims

Tron founder Justin Sun alleges market manipulation by Chain, leading to potential legal action as Onyxcoin (XCN) surges 400% amid heated exchange.

Godfrey Benjamin By Godfrey Benjamin Marco T. Lanz Edited by Marco T. Lanz Updated 3 mins read
Chain Vows to Sue Justin Sun Over Onyxcoin (XCN) Market Manipulation Claims

Key Notes

  • Chain denies involvement in XCN trading, emphasizing OnyxDAO's management role while exploring legal action against Sun's accusations.
  • Despite controversy, XCN maintains momentum with 31.72% daily gain and $1.42B trading volume, signaling market confidence.
  • Sun calls for SEC and DoJ investigation while TRX faces consolidation concerns despite his optimistic stance on network value.

Tron Network founder Justin Sun faces potential legal action from blockchain startup Chain following controversial market manipulation accusations. In a January 24 post on X, Sun directly challenged the Pantera Capital-backed company, prompting an immediate response.

Sun outright claimed that Chain was utilizing high leverage and contracts, which hold the capacity to inflict serious harm on crypto exchange users. Though the Tron executive did not provide enough details on the market manipulation, he urged trading platforms to pay close attention to the potential risks. 

Justin Sun Calls on US Regulators to Investigate Chain 

According to his post, Sun planned to inform United States regulators about the “illegal activities” of this platform. Additionally, he tagged top cryptocurrency exchanges including Kraken, Bybit, and Coinbase urging them to take necessary action. 

Ben Zhou of Bybit responded to the action call, citing that his firm’s risk team is always out to combat such manipulations.

However, the allegations did not go down well with the Chain team as they refuted the claims. For the sake of clarity, the blockchain firm pointed out that it is not actively involved in any trading of its associated Onyxcoin XCN $0.0209 24h volatility: 1.6% Market cap: $683.75 M Vol. 24h: $79.59 M , nor is it part of any market manipulation, whether directly or indirectly. Chain explained to X community members that the token in question is managed by OnyxDAO.

On the basis of this alleged false accusations, Chain said it is exploring “legal remedies” against Sun. This ‘threat’ has no impact on the Tron Network founder, as he responded by tagging OnyxDAO. 

He also called on the United States Securities and Exchange Commission (SEC) and the Department of Justice (DoJ) to look into the situation. 

XCN Records 400% Surge in a Week

Notably, Sun made this move after Onyxcoin, the token in question, recorded a massive 149% increase in earlier trading. At the time, its 7-day price gain jumped as high as 400%.

Until now, XCN price is still soaring, with traders obviously unperturbed by the ongoing discussions. 

According to CoinMarketCap, the token is currently the 114th largest cryptocurrency by market cap, valued at $746.41 million. It is trading at $0.02424, corresponding with a 31.72% increase in the last 24 hours. 

XCN’s trading volume has hit a 276.18% increase and jumped to $1.42 billion. This outlook suggests that investors and traders are still confident in the potential of the token.

TRX Struggles to Stay Relevant 

While Sun is engaged in conversations about XCN, his token TRX $0.24 24h volatility: 1.4% Market cap: $20.80 B Vol. 24h: $807.02 M  is struggling to stay afloat. Based on current market data, the coin is seeing a bullish ride but some market observers have concerns

At a price level of $0.2588, many believes TRX is still consolidating and could be heading towards a bearish breakout. 

On the other hand, Sun strongly believe that this is a good time to “buy the dip.” He highlighted that the network is highly undervalued, with developers currently working on expanding staking opportunities. The goal is to offer Tron holders rewards for participating in its decentralized governance. 

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

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