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Tron [TRX] is no longer decentralized, states ex-CTO Lucien Chen following exit from network




Tron is no longer decentralised, states co-founder and ex-CTO Lucien Chen in departure blog
Source: Pixabay

Lucien Chen, the former CTO of Tron had announced his departure from the Tron network via a May 10 Medium post. The post stated that Chen would “rebuild a new TRON” citing several reasons for the need of a truly decentralized network, which he claimed Tron was not.

An expert in Big Data, Chen joined Tron in October 2017 following stints at Tencent and Alibaba already in his repertoire. On joining Tron, Chen affirmed the development of Tron in the online entertainment realm using blockchain technology and was responsible to curate the “coordination plan of TRON’s global technical team and arrange all project development schedules”.

Chen highlighted several reasons for leaving Tron, the prime one being that the network did not adhere to the decentralization principle completely. In his words:

“As a technical man, I feel very sad that the TRON has departed from the faith of “decentralize the web”.”

Adding on to his point of lack of decentralization in the network process, he stated that in the “DPOS and Super Representative node” there was a problem of “centralized voting”. Secondly, Chen attested that he was the builder of the “technology platform of TRON” and that the network was not associated to the internet.

Speaking about one of the keys of the Tron ecosystem, the decentralization applications [DApps], Chen stated:

“The TRON ecosystem is still far from commercial applications that users can really apply to. Bad money drives out good. Thus, DAPP in TRON is basically the gambling and funding project.”

He added that the Justin Sun-led network did not adhere to the “original intention of the blockchain”, which is primed on the principle of decentralization, which Tron was not following. Three key centralized elements within the network, according to the ex-CTO are token distribution, super representatives, the code development, as well as the organisation of the TRX community, citing lack of diversified voices.

Chen remarked:

“The whole project has developed into a monetary tool without any “decentralize the web” spirit.”

Not taking any names, Chen lamented to see the Tron project “become like this” adding that the “dreams and visions” mentioned to him by Sun “have been ruined”.

The Medium post stated that Chen will launch his own ecosystem titled “Volume Network”. He added that this ecosystem will “hope to rebuild a new TRON returning to the spirit of the blockchain”.

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise




JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:

“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.

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