Justin Sun lands in fresh controversy, accused of ‘Governance attack’
ambcrypto.comThe founder of TRON and billionaire Justin Sun found himself in the middle of a controversy. As per this, the community accused the Chinese-born Grenadian diplomat of being a part of a “Governance attack” scheme. However, some, including himself say otherwise.
Members of crypto think tank GFX Labs’ governance division were the first ones to raise red flags in a tweet on 5 February. As per this thread, billionaire Justin Sun took a considerable loan of Compound’s governance token (COMP). Sun’s wallet borrowed 99,000 COMP tokens worth over $13 million. Later sent 102,000 tokens to Binance, the world’s largest crypto exchange.
<p lang=«en» dir=«ltr» xml:lang=«en»>.@justinsuntron recently borrowed 90k $COMP from @compoundfinance (+99% of the borrow cap) and currently has 102K COMP in his alt. He hasn't set it up for voting, but everyone should keep an eye out.https://t.co/4aWtJUBN92— GFX Labs (@labsGFX) February 3, 2022
However, later an address that received $9 million worth of COMP tokens from Binance proposed adding TUSD as a collateral asset on Compound. This would allow Compound users to take out loans against their TUSD (TrueUSD) holdings. The governance of the on-chain of the Protocols Defi was often from the account weighted the token itself. Hence, GFX characterized the loan as a “governance attack”.
<p lang=«en» dir=«ltr» xml:lang=«en»>Compound getting governance-attacked by Tron rn. Justin’s trying to raise the TUSD collateral factor from 0% to 80%. They borrowed enough COMP to reach 50% quorum. https://t.co/ls03XNZhUf— John Wang (@j0hnwang) February 4, 2022
According to pseudonymous GFX Labs contributor PaperImperium, the patterns here resembled a similar case concerning MakerDAO’s governance in January. “Justin
Read more on ambcrypto.com
