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Tron’s Justin Sun backtracks; will reward first Tesla giveaway winner after public outrage

Namrata Shukla

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Tron's Justin Sun accused of scamming its Tesla giveaway winner
Source: Pixabay

Tron Foundation has been actively seeking the Tron community’s participation in different projects and giveaways. One such giveaway seems to have landed Tron Foundation’s CEO and Founder, Justin Sun, in a tough spot.

To celebrate the Tether/Tron partnership, the Foundation decided to organize a USDT giveaway from 30 April, with an initial budget of $20 million. Additionally, the Foundation promised one Tesla to one of the “lucky Twitter followers” to begin the giveaway.

Sun even recorded a video, explaining the TWrench application, which was used for the draw.

The lucky winner of the Tesla was @uzgaroth, a Twitter user. Justin Sun reached out to him on Twitter, asking him to send his details to ship the car.

Source: Twitter

Source: Twitter

However, Sun canceled this round on the grounds of transparency and did a live stream of the giveaway. Sun tweeted saying:

“We shared a video of the selection process for transparency. Due to the large size of the video, Twitter wasn’t able to compress it properly resulting in a glitch. We will contact Twitter to make sure this doesn’t happen again. We apologize to the community for the mishap.”

Sun added,

“For full community transparency, we decided to cancel the previous result and so a live stream draw instead.”

@uzgaroth claimed that he sent in his details immediately after Sun declared him the winner. He tweeted,

Source: Twitter

Source: Twitter

After the issue was escalated by many Twitter users, Justin Sun responded to @uzgaroth. Sun apologized, stating that his team decided that a non-livestream method to determine the giveaway winner would cause “ambiguity and controversy”. He instead offered @uzgaroth compensation,

“However, I do recognize that this is an unfortunate situation, and would like to extend my warmest welcome to the next #niTROn summit in 2020, including a fully paid round-trip ticket to the event location. We are very grateful for your continued support. #TRON”

This did not go down well with the community, with many suggesting that the winner of the second giveaway is actually a bot. Twitter user @CryptoJohnGalt pointed out in a thread that Sun was “up to something” by not giving away the Tesla to @uzgaroth, but to @kozmenko2017, who appeared to be a bot. @CryptoJohnGalt tweeted,

Source: Twitter

Source: Twitter

He attached the following to prove his stance,



Source: Twitter

Source: Twitter

@CryptoJohnGalt concluded by saying,

“More Hard to say exactly what Justin’s trying to pull here, but it’s pretty clear he’s trying to pull something, amiright?”

UPDATE: Justin Sun has since released an official statement, announcing that he will be awarding a Tesla to the winner of the first giveaway, @uzgaroth. His full statement read,





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Altcoins

FLiK case: Utility tokens take another hit in case allegedly involving Rapper TI, claims prominent lawyer

Priya

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Source: Unsplash

Stephen Palley, a prominent lawyer at Anderson Kill, spoke out about the FLiK token case via his official Twitter handle. Notably, unlike most tokens in the space, FLiK made headlines because of its celebrity backing.

Towards the end of last year, it was reported that the US Rapper Clifford Joseph Harris Jr., who goes by the stage name T.I. and T.I.P., was sued for $5 million over the alleged failure of the token promoted by him and his partner, Ray Felton. The rapper was being sued by a group of 25 individuals who claimed that that they invested around $1.3 million in the tokens.

Additionally, there were allegations that the rapper used the raised money to increase the token’s value, following which the duo sold their holdings after the coin crashed. Other well-renowned celebrities such as Kevin Hart and Mark Cuban were also reportedly associated with this project.

On the recent developments surrounding the case, Stephen Palley stated,



“Utility tokens” take another hit in case allegedly involving rapper TI. Court says FLiK ICO tokens = securities under Howey Test, for motion to dismiss purposes. That they offered some functionality ≠ relevant given buyers’ expect of profits solely from efforts of others. 1/4″

Source: Twitter

Source: Twitter

Source: Twitter
The lawyer further stated that,”use of funds” was already determined by the defendants, “per the FLiK token whitepaper.” He went on to state that there was a time problem, adding that Federal Law rules that “unregistered sale” of security tokens were supposed to be reported within 12 months after the violation.

The lawyer concluded by tweeting,

“ps — form was never going to be exalted over substance, so none of this is a huge surprise. Also, this is a ruling on Rule 12(b)(6) motion to dismiss so the Court takes the allegations as true for purposes of ruling. The merits still have to be litigated.”





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