PoW Track Turns Red and Ignites Dynex, Coin Price Soars Several Times, Facing Multiple Questions from the Community
PoW Track Turns Red, Ignites Dynex, Coin Price Soars, Faces Community Questions
With the help of the AI trend, the emerging POW internet celebrity Dynex has attracted attention due to its multiple-fold increase, but at the same time, it has begun to face multiple doubts from the crypto community, with negative news such as founder’s alleged fraud and white paper plagiarism continuously coming out.
Original author: Nancy
Looking at the current crypto market, most popular public chains are based on the POS model, and it seems difficult for POW to come up with a heavyweight work, especially after Ethereum switched to the POS mechanism. However, recently, new POW internet celebrities such as KasLianGuai and Dynex have attracted attention to the POW track.
Among them, Dynex, which focuses on “neuromorphic computing platforms” with the help of the AI trend, has not only attracted many miners to participate but also attracted attention in the secondary market due to its multiple-fold increase. However, at the same time, Dynex has begun to face multiple doubts from the crypto community, with negative news such as founder’s alleged fraud and white paper plagiarism continuously coming out.
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According to the official introduction, Dynex is a neuromorphic supercomputing blockchain based on the DynexSolve chip algorithm. It aims to increase the speed and efficiency of decentralized networks by using the Proof of Useful Work (PoUW) method, providing computing power for machine learning, fintech, biopharmaceuticals, and other fields.
Dynex network nodes are composed of PoUW miners, allowing any miner to perform Dynex chip calculations and receive native token $DNX as a reward, thereby achieving high-speed and efficient execution of calculations in a decentralized network, even surpassing quantum computing. Moreover, Dynex also adopts a completely anonymous peer-to-peer transaction privacy method, and its token $DNX has no ICO, no pre-mining, and no team reservation.
Many ordinary investors find it difficult to verify the technology (which we will elaborate on in the following text), but Dynex’s market performance is impressive. CoinGeoko data shows that since the beginning of this year, the price of $DNX has increased by more than 34.7 times.
In terms of computing power, according to hiveon.com’s computing power management platform data, as of August 10th, the computing power of $DNX accounted for 18%, ranking first among the POW coins listed on the platform, far exceeding projects such as KAS, ETC, and RVN.
In addition, according to Mining Pool Stats data, as of August 10th, Dynex’s network computing power was 1.09 GH/s, ranking 38th. In the past six months, Dynex’s computing power has also shown an upward trend, although it briefly declined due to algorithm upgrades, but then quickly recovered. In terms of computing power distribution, the top three mining pools account for nearly 84.4% of the total.
Founder previously punished by SEC for fraud, white paper suspected of plagiarism
While Dynex is gaining popularity, there are also doubts about plagiarism of the whitepaper and the background of the project team. Dynex is an anonymous team, and anonymous identities are not uncommon in the Web3 world that emphasizes decentralization and privacy. However, this means that once these projects behave maliciously, it will be difficult for users to hold them accountable.
Regarding the anonymity of the team, according to a tweet from the Dynex Chinese channel, the parent company of Dynex is a chip company in Northern Europe, which has not been publicly disclosed due to tax and other issues. However, the community does not accept this explanation. Some community members have discovered fraudulent behavior by Dynex founder Daniel Mattes. According to his LinkedIn profile, Daniel Mattes is an Austrian internet entrepreneur and venture capitalist. He has founded multiple 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 U.S. Securities and Exchange Commission (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 them. Although Daniel Mattes neither admitted nor denied these allegations, he ultimately agreed to pay over $17 million in settlements and is no longer allowed to lead a publicly traded company in the United States.
In addition, according to Twitter user @OlivierHelden, Dynex’s predecessor may be DeepQ, which had a similar neural morphology chip project. The Adobe Stock Flash serial number in the promotional video on Youtube for DeepQ is exactly the same as the one on the Dynex official website (the video on Dynex’s website is currently a 404 error and cannot be displayed). Interestingly, some community members revealed that their Discord account was banned after inquiring about the relationship between DeepQ and Dynex in the Discord 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 can transform any modern GPU into a simulated neural morphology computing chip through DynexSolve, but there is no public paper on this revolutionary technology to this day. Moreover, neural morphology computing has not been applied in the real world yet, and it is still in the exploratory stage for top universities, the US military, Intel, and IBM.
Regarding PoUW, analyst 陈剑Jason stated that for a blockchain, PoUW is too non-standard in the three stages of initiation, process, and termination. The number and frequency of tasks are non-standard, the difficulty and time required to complete tasks are non-standard, and the correctness of verifying task results is non-standard. As a result, the chain cannot stably produce blocks and effectively verify, making it lack 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 knowledge of what they are doing and no entry point for publishing tasks.
For these technical issues, some community members believe that Dynex’s ability to conduct ML public testing indicates that its technology can withstand public scrutiny. However, the public testing has been delayed multiple times due to technical problems.
In addition, Dynex’s white paper has also been found to have copied and pasted content, as shown in the figure below. Some of Dynex’s content is almost identical to the white paper of MemComputing, a US company that holds a patent for digital memory computing (DMM).
Comparison of content between Dynex and DMM white papers
In conclusion, it is not surprising that Dynex has received funding due to the AI boom and the popularity of the POW concept. Especially with the mining boom brought by KasLianGuai and the large number of idle mining machines after Ethereum transitioned from POW to POS, Dynex has become a 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 doubts from the market, “hard power” needs to be demonstrated.