Blockchain firm Chain introduced plans to take authorized motion in opposition to TRON founder Justin Solar over defamation following his allegations of market manipulation involving the XCN token. The announcement, made on January 24, was in response to the TRON founder’s claims on X.
https://twitter.com/justinsuntron/standing/1882741054618628385?t=2VhwOSOUI52cQ-4oxZEfGw&s=19
Solar accused Chain of participating in dangerous high-leverage buying and selling practices that allegedly destabilized XCN’s value. He additionally pledged to report these actions to the U.S. Securities and Trade Fee (SEC) and the Division of Justice (DOJ). “We are going to report their unlawful actions to the SEC and DOJ for additional investigations,” Solar said in his publish.
Chain Denies Allegations and Clarifies XCN Governance
In response, Chain strongly denied the accusations, asserting that it’s neither concerned in buying and selling XCN nor engaged in market manipulation.
“The Chain group just isn’t actively engaged in ANY buying and selling of XCN, nor concerned in ANY market manipulation straight or not directly. We take these allegations extraordinarily significantly and are exploring authorized cures in opposition to Justin Solar,” Chain posted on X.
The corporate additionally clarified that the XCN token is managed by OnyxDAO, a decentralized autonomous group (DAO), and never by Chain itself. This distinction underscores the decentralized governance construction of the XCN ecosystem.
Background
XCN, the governance token for OnyxDAO, lately noticed a pointy value enhance, surging by almost 150% in market worth final week. As of January 24, XCN is buying and selling at $0.0023, in response to CoinGecko.
Justin Solar attributed the spike to market manipulations by Chain, earlier than the denial by the blockchain agency. The tensions between Solar’s allegations and Chain’s rebuttal spotlight the complexities of accountability in blockchain initiatives.
As authorized proceedings unfold, the end result is more likely to affect broader discussions on token transparency and regulatory compliance, providing key classes for stakeholders navigating the evolving crypto panorama.
