TRON Allegedly Being Targeted By SEC?

TRON seems to be garnering a great deal of attention lately, but some of the publicity might come at a cost. Apparently, the project has been picked up on the radar of the U.S. Securities and Exchange Commission (SEC) which could mean trouble for the project.

This unwanted attention from one of the world’s most authoritative regulators could spell trouble and hamper the progress made by TRON (TRX).

Tom Schultz, CEO of ChaCingWallet, recently shared information allegedly obtained by a person with close ties to the SEC. This “SEC Insider” has advised against any involvement with TRON but further than this Schultz provided no additional information.

Schultz posted a tweet which caused waves throughout the cryptocurrency community, where sentiment for TRON is already divided about the hyped project. Many took this news in a serious light while others remain sceptical with many arguing that Schultz’s stance on TRON might be biased.

TRON = Far From Perfect:

Justin Sun, founder of TRON is known as quite the influential figure in the cryptocurrency sector. Sun’s combative marketing strategies have aided in boosting hype around his project but at the same time also attracted unwanted levels of criticism.

According to Weiss Ratings, a renowned research and analysis provider, TRON stands as the only initiative out of the Top 10 who are more driven to promote itself than that of the technologic innovations.

Furthermore, Sun has on numerous occasions been accused of copying & pasting large segments of code from the Ethereum platform as well as other blockchain protocols. Sun has allegedly in the past change file names in order to mask plagiarism. This scandal came to light back in June with Sun calling these accusations a misunderstanding.

In addition to this, TRON has often been accused of price manipulation as well as fraudulent tactics which could provide improper benefits for small group’s of large investors while at the expense of smaller supporters. As reported by CoinBeat, the BitTorrent initial coin offering (ICO) could very well prove this point as the issuance was over in a matter of minutes with only a handful of participants purchasing tokens successfully while many smaller investors were kicked out by a system with apparent technical issues.

The issuance brought TRON over $7 million in funds but is also seen as yet another blow to the project’s already questionable reputation.

Is There Truth To The Rumour That The SEC Is Watching?

While these aforementioned issues could very well hurt TRON in the long, just how does the SEC fit into the picture?

Schultz’s followers did state that due to the fact that TRON is a Chinese company, the SEC might not have any say.  Furthermore, many supporters of TRON believe that TRX coins are not securities, but it is definitely worth noting that TRON actually has an office based in the USA and they also currently issue coins to citizens in the US.

Sun’s relentless marketing tactics have indeed enticed investors and given him massive pull, but this often raises alarms for regulators, especially the SEC, who have the responsibility of ensuring that American investors are not the victims of scams.  In addition to this, TRON also hosted the recent BitTorrent ICO which could very well be seen as an illegal issuance of securities.

Could the SEC indeed be on the hunt for TRON or could this be speculation from people against Sun’s project? Let us know your thoughts by leaving a comment below.