TrueBit in doubt after 2-hour plunge of 85%

What happened to TruBit may be more bizarre than fiction ……

TrueBit in doubt after 2-hour plunge of 85%

If the TrueBit release was not a scam, then why are so many people still suspicious of the program?

We still don’t know the specifics of the TrueBit protocol release, as there are no official media channels or any kind of updated announcement from TrueBit.

According to an April 20th posting by the TrueBit team on Substack, TrueBit aims to “enable smart contracts to securely perform complex computations in a standard programming language at a lower cost.”

If TruBit’s vision does come to fruition, the project will have a huge positive impact, but why does TrueBit operate differently than other projects and what makes people so skeptical about it?

The reason why so many people are concerned is that the TrueBit protocol had little disclosure of the project’s progress for some time before it suddenly became active, but it was discovered that the project actually has two Github accounts – TruebitProtocol and the more frequently updated TrueBitFoundation.

TrueBit’s official press did not explicitly state the token contract, leading some to believe that the contract’s operation might be a scam. However, TrueBit’s contract address can be found in the Frequently Asked Questions (FAQ) section of their website.

The most recent news from TrueBit is their announcement of the mainnet going live on April 26th. Prior to that, there had been no activity on Twitter from the project’s team since January 25.

The project does not have any official telegrams or Discord groups.

Considering the above points and the hype and fraud that filled the token sale process, it is understandable that people are skeptical about the project.

Banteg tweeted.

The TrueBit protocol restricted user access to the code base during the soft launch, and only a few people figured out how to take advantage of the bonding curve (bonding curve) contract. This resulted in an inflow of $130 million, and the contracts would only be bought back at one-eighth of that price.

TrueBit in doubt after 2-hour plunge of 85%

This has led to dramatic fluctuations in the price of TrueBit tokens.

TrueBit in doubt after 2-hour plunge of 85%

Why has this project sparked a frenzy of interest?

There are many claims about the TrueBit project, the most influential being that its whitepaper “was co-written by V-God”.

However, the Truebit whitepaper released in 2017 was actually co-written by Jason Teutsch and Christian Reitwießner.

The white paper does mention V-God, but the “co-author” claim probably stems from another paper on ICOs that he co-authored with Jason Teutsch in 2017. In addition, V God mentioned TrueBit in a post on ethresear.ch, which further fueled the FOMO sentiment.

Unexpected or Reasonable

Although TrueBit’s founders had been planning to release the project in secret, the token has been live for several days now and there is still a great deal of uncertainty.

Will the TrueBit project be another rogue deployment like $CRV? Is the team hoping someone will help them deploy the protocol, or has someone acquired the tokens from their private placement and forced them to rush to launch.

TrueBit’s only response was to tweet that they plan to hold a Q&A session soon, which may be the only thing that dares to give comfort to those doubt-filled TRU buyers.

Due to the lack of information about the token sale, many believe that a union curve was used and therefore the tokens were not able to maintain their price. However, the team did not mention any union curve, this is just a misunderstanding of the minting, burning process that TrueOS uses in its sales.

Users can interact with the TrueOS smart contract to mint new TRU tokens from their ETH, however, as more tokens enter circulation, the cost of minting becomes very expensive.

TRU tokens can also be sold back to TrueOS, which buys tokens for 12.5% of the maximum mint price and then destroys those tokens.

Everything was going well until May 2, when the price of TRU rose for 24 hours straight before the coin price suddenly plummeted and the hype eventually turned into a panic.

A TRU whale removed his liquidity and sold $465,000 worth of TRUs in the market. the market could not handle such a large volume of transactions and token holders began to panic, causing the price of TRUs to eventually drop from $1.40 to $0.20 in 2 hours.

TrueBit in doubt after 2-hour plunge of 85%

Unless the TrueBit team addresses this issue in their Q&A, we may never know for sure if this release went as planned.

It may be true that the project’s owners had no intention of marketing and promoting the project, as TrueBit’s founders have said in the past that they prefer to focus on development rather than satisfying speculators. However, the lack of communication only adds to the suspicion of the project, which could have been avoided with a tweet.

It’s not a big deal, and the project development team shouldn’t be held responsible for token holders’ panic selling behavior, but why did the team stay silent for so long when just a few words could have had a positive impact?

Users can understand that the developers chose to focus on technology rather than market cap management, but their inaction may have had a greater impact than expected when the project’s market cap was in question.

We still don’t know if this was due to a lack of necessary communication that triggered people’s misunderstanding or if the project was malicious until now.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/truebit-in-doubt-after-2-hour-plunge-of-85/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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