The price of Tron (TRX) fell as much as 9 percent on Monday after protesters furious at Justin Sun for allegedly remaining silent about a $30 million Ponzi scheme stormed the project's Beijing offices.
As of the time of writing, the Tron price stood at $0.034, down more than 5 percent from its daily high. The move downward negated a majority of gains TRX made on Sunday, though it clung to a 24-hour advance of about 4 percent against the dollar.
On the other hand, Tron plunged more than 10 percent against bitcoin from an intraday peak of 311 satoshis.
Viral Video Stokes Rumor Mill, Tron Responds
TRX's sudden drop against both the dollar and bitcoin appeared following a protest related to a serious accusation against Justin Sun, the founder of Tron.
Now, a video circulating on social media has spooked traders and spun the wheels of the TRX rumor mill.
The video allegedly showed uniformed officers standing outside the Tron offices in Beijing. But what were they doing there?
Some speculated that police had raided Tron's offices.
Others claimed that the officers in the video were either security guards who work at Tron or local police called in to control an angry mob furious over the WFSC scam.
Context: ponzi scheme that borrowed Tron's name defrauded investors out of ~$145M USD. Guy in the video is requesting @justinsuntron to clarify whether the scam has anything to do with him.https://t.co/59gBKFOTpF
— Jason Choi (@mrjasonchoi) July 8, 2019
Justin Sun denied that Tron's office had been raided.
"Everything is fine," he said. "Stop spreading fake news and pictures."
— Justin Sun (@justinsuntron) July 8, 2019
In a separate post, the Tron Foundation refuted that the Beijing police had raided their office. The foundation said that police had been called in to suppress a mob of protesters upset about the Ponzi scheme.
The firm also disassociated itself from the Wave Field Super Community scam, clarifying that it had warned the community about it via both its Chinese and English messaging groups.
"After first hearing of Wave Field Super Community, officers of Raybo technology, a partner of TRON in mainland China, communicated with that company, seeking a cease and desist from acting in TRON’s name. The company also reported the company to the public security organs. Raybo is working with police to bring the criminals to justice and continues to work internally to safeguard the rights and interests of investors."
Tron Looks Bearish (For Now)
This unfortunate incident serves as an alarm bell for traders who are long on the TRX cryptocurrency. The TRX-to-bitcoin exchange rate is looking to extend its bearish action towards 278 satoshis. If the level breaks to the downside, the pair could fall towards 271 satoshis.
Disclaimer: This article is intended for informational purposes only and should not be taken as investment advice.