TRON DEX data shows that the JustSwap platform was inflated by millions and the shady tokens on the Uniswap clone are trying to attract users by inflating the trading volumes as we are reading more in today’s Tron trx news.
The unverified token on JustSwap accounted for $364 million in a trade or about 91% of the entire DEX volume. If a token is unverified by CoinGecko, there’s negligible demand for the token to get listed so an organic volume of $360 million is highly unlikely. These tactics are a chance to bring in more speculators and to boost the users of the JustSwap platform. JustSwap is a Uniswap clone and recorded more than $360 million of trading volume in the unknown token which only raised the suspicion that the exchange is a rifle wash trading. This comes at a time when the biggest DeFi tokens are struggling to trade more than $100 million of daily volume.
Uniswap’s success story was quite remarkable and with it there were several other clones that popped up on the competing blockchains and tried to recreate the success. One of these clones is Justin Sun’s JustSwap platform which is a TRON-based DEX. According to CoinGecko, JustSwap had higher volumes than Uniswap for a short period of time but this was rectified later as a single unverified token which accounted for 91% of the exchange’s volume. The top data aggregator, CoinGecko, hasn’t listed the token which means that there’s little demand on the market, as the co-founder of this platform, Bobby Ong, said:
“All tickers on CoinGecko are manually verified by a member of our team to ensure that we tag them correctly to the right coin. Unverified tickers means we have yet to tag them. We recently added Justswap a few weeks back and there has been some backlog.”
While it is not impossible, it is highly unlikely unverified tokens can actually hit over $50 million in daily volume. However, one top trader asset on JustSwap was an unverified coin that had $364 million of volume as Ong said:
“They are most likely spam tokens (or tokens that have not been tracked by CoinGecko due to the lack of market interest). These tokens may not have much use and could possibly be used to wash trade to inflate volume.”
TRON was in the headlines for controversies plenty of times so this comes as no surprise really. While these volumes are not impossible, the chances of this volume being real are basically none as it took DeFi’s top assets years to achieve more than $100 million of volume. The established tokens such as SNX and COMP still don’t trade with $100 million of volume per day, as per the latest TRON DEX data.