POW track turns red, igniting Dynex; coin price skyrockets several times, but faces multiple community doubts behind it.
POW track ignites Dynex; coin price skyrockets, but faces community doubts.
Author: Nancy, LianGuaiNews
In today’s cryptocurrency market, most of the popular public chains are based on the POS (Proof of Stake) model, while it seems difficult for POW (Proof of Work) to produce a heavyweight project, especially after Ethereum transitioned to the POS mechanism. However, recently, emerging POW projects such as KasLianGuai and Dynex have attracted renewed attention to the POW track.
Among them, Dynex, which focuses on “neuromorphic computing platforms” and leverages the AI trend, has not only attracted many miners to participate but also garnered attention in the secondary market due to its tens of times increase in value. However, at the same time, Dynex has faced multiple doubts from the cryptocurrency community, including allegations of fraud by its founder and accusations of plagiarizing its whitepaper.
Self-proclaimed to Build a Neuromorphic Supercomputing Blockchain, Attracting Attention through Hype
According to the official introduction, Dynex is a neuromorphic supercomputing blockchain based on the DynexSolve chip algorithm. It aims to provide computing power for machine learning, fintech, biopharmaceuticals, and other fields by using the Proof of Useful Work (PoUW) method to increase the speed and efficiency of decentralized networks.
Dynex network nodes are composed of PoUW miners, allowing any miner to perform Dynex chip calculations and receive native token $DNX as a reward. This achieves high-speed and efficient execution of computations in a decentralized network, even surpassing quantum computing. Moreover, Dynex adopts a fully anonymous peer-to-peer transaction privacy method, and its token $DNX has no ICO, no pre-mining, and no team reserves.
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Many ordinary investors find it difficult to verify the technology aspect (which we will discuss in detail below), but Dynex’s market performance is impressive. According to CoinGeoko data, since the beginning of this year, the price of $DNX has increased by over 34.7 times.
In terms of computing power, data from the hiveon.com computing power management platform shows that as of August 10th, $DNX accounted for 18% of the total computing power among the listed POW coins on the platform, ranking first and far surpassing projects such as KAS, ETC, and RVN.
In addition, data from Mining Pool Stats shows that as of August 10th, Dynex’s network hashrate was 1.09 GH/s, ranking 38th. In the past six months, Dynex’s overall hashrate has also shown an upward trend, although there was a temporary decline due to algorithm upgrades, which was quickly recovered. Looking at the distribution of computing power, the top three mining pools account for nearly 84.4% of the total.
Founder Previously Punished by SEC for Fraud, Whitepaper Accused of Plagiarism
As Dynex gains popularity, doubts about plagiarism in its whitepaper and the background of its project team have also emerged. Dynex has an anonymous team, and anonymity is not uncommon in the Web3 world that emphasizes decentralization and privacy. However, this means that once these projects engage in wrongdoing, it will be difficult for users to hold them accountable.
Regarding the anonymity of the team, according to a post on Dynex’s Chinese channel, the parent company of Dynex is a chip company from Northern Europe that has not been publicly disclosed due to tax and other issues. However, the community does not accept this explanation, as some community members have discovered fraudulent behavior by Dynex founder Daniel Mattes. According to LinkedIn, Daniel Mattes is an Austrian internet entrepreneur and venture capitalist who has founded several companies, including artificial intelligence company 42.cx, VoIP company Jajah, and mobile payment and ID recognition startup Jumio.
As the former CEO of Jumio, Daniel Mattes was charged by the US SEC in 2019. According to SEC public documents, Daniel Mattes deceived investors before the company went bankrupt, not only by falsely reporting the company’s revenue but also by secretly selling company stocks without reporting it. Although Daniel Mattes neither admitted nor denied these charges, he eventually agreed to pay a settlement of over $17 million and is no longer allowed to lead a publicly traded company in the United States.
In addition, according to a Twitter user @OlivierHelden, the predecessor of Dynex may be DeepQ, which not only had a similar neural morphic chip project but also had the same Adobe Stock Flash serial number as the promotional video on DeepQ’s YouTube channel, which is completely identical to the promotional video on Dynex’s official website (the video on Dynex’s website is currently showing a 404 error). Interestingly, some community members revealed that their accounts were banned from accessing Discord after inquiring about the relationship between DeepQ and Dynex in the community.
In addition to the team background, the two core advantages promoted by Dynex, DynexSolve and PoUW, have also been questioned for their authenticity. According to KOL @陈剑Jason, Dynex claims that it can transform any modern GPU into an analog neural morphic computing chip through DynexSolve, but such a revolutionary technology has not been supported by any publicly available research papers to date. Moreover, neural morphic computing has not been applied in the real world, and it is still in the exploratory stage for top universities, the US military, Intel, and IBM.
As for PoUW, analyst 陈剑Jason believes that for a blockchain, PoUW is non-standard in the beginning, process, and end stages. The quantity and frequency of tasks are non-standard, the difficulty and time required to complete tasks are non-standard, and the verification of task results is non-standard. As a result, it becomes impossible to consistently produce blocks and effectively validate them, and this chain lacks basic usability.
It is worth mentioning that 陈剑 also pointed out that the Dynex official website shows that 3,300 tasks have been completed, but currently, only 1 task is in progress, and all these tasks are black boxes with no information on what they are doing and no entrance to publish tasks.
Regarding these technical issues, some community members believe that the fact that Dynex is able to conduct a machine learning public beta test shows that its technology can withstand public scrutiny. However, the public beta test has been repeatedly delayed due to technical issues.
Furthermore, Dynex’s whitepaper also contains copy-paste behavior, as shown in the image below. Parts of Dynex’s content are almost identical to the whitepaper of MemComputing, a US company that holds a patent for digital memory computing (DMM).
Comparison of content between Dynex and DMM whitepapers
In conclusion, it is not surprising that Dynex has attracted funding amidst the AI boom and the rise of the Proof of Work (POW) concept. Particularly, with the popularity of KasLianGuai bringing about a mining frenzy, and the large number of mining machines left idle after Ethereum’s transition from POW to Proof of Stake (POS), Dynex has become the migration target for miners. As a project that requires strong technical research and development capabilities, it is reasonable for the community to have various doubts driven by interests. However, in order to dispel market concerns, Dynex needs to demonstrate its “hard strength”.