Justin Sun’s ‘Tens of Billion Industry Giant Partnership’ Tweet Under Fire for Misleading Investors
Can Tron Be Considered Guilty of Misleading Investors By Claiming Partnership with Baidu?
Everybody in the Tron community was hyped when the founder of the Tron Foundation, Justin Sun, announced a mysterious partnership with a huge company.
“Trusted” sources affirmed that it was Baidu, China’s “Google” and one of the biggest companies in the country. However, the partnership was not really a partnership at all in the end, which lead many people to get really angry at Sun.
The truth is that Tron acquired the services of Baidu for launching, building and operating blockchain-based products on Baidu Cloud. This is a huge exaggeration when you consider that it was said to be a partnership. Tron is basically just paying Baidu to use their technology.
On the business level, it does not look like the companies had a lot of connection. Tron will only build on Baidu Cloud. So much for the secretive partnership, huh? Ari Paul, the co-founder of Blocktower, has commented on the case. He has affirmed that this was a case of misleading marketing because if you
“buy a computer with Microsoft Windows installed, I should not claim to have partnered with Microsoft”.
According to him, when two parties are not benefitting from the relationship, it is not exactly a partnership, so it should be noted that it was a marketing move that was not cool.
An actual partnership would see two companies working together instead of one offering the services to the other one.
Justin Sun Made Misleading Comments
The central point of the whole controversy is that while it was not necessarily a lie, Justin Sun pretty much exaggerated a lot, which is also not the first time. Tron is a client, not a partner of Baidu, so this can obviously be considered very misleading on many levels.
— Justin Sun (@justinsuntron) October 12, 2018
It’s a shame that these things are still happening as the crypto industry struggled to actually get mainstream traction and it will be harder to do it if influent people like Justin Sun continue to make these claims which are not true.
For an industry that talks so much about transparency, we have to ask ourselves whether the Tron Foundation really embraces these values or whether the company is just interested in generating positive buzz to boost adoption and token prices.