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Response on Francophone Media Attack and Damage Restitution Proposal

The CRD Network has become aware of content that has been distributed over the last few days, which has a material effect on our reputation in the community. The statements contained within those articles are not only false, but we also interpret them to be malicious in intent and will thereby be addressing them to the full extent of the law, as well as seeking restitution for damages caused. 

We have identified that there are two primary profit motives for organizing these libelous attacks against us:

  • There is evidence to support a short-selling campaign related to the CRD Network, meaning that anyone who participates in it stands to benefit greatly by dragging us through the mud and making the story as one-sided as possible. 
  • The disseminators of this misinformation have profited from social media monetization off of traffic generated from the defamatory articles.

We are currently evaluating a step by step approach by which we will address these libelous accusations through the proper legal and relevant channels. We will also be contacting social media providers to stop doing business with these parties which are seemingly profiting from libel by posting half-truths, or even outright fabrications.

The spearhead of our social media defence strategy will be to go for what allows and motivates them to generate this type of content en masse. Hence we will make a strong case to Google, and thereby to AdSense (which is the most important advertiser for digital purposes), that this site is not in the interest of the public. 

As per Google’s own policies regarding ads, this is a violation of their platform for several reasons. Given that they 1.Enable Dishonest Behaviour; 2. Misrepresent Information and 3. Violate Trademarks - each one of these breaches of standards would be subject to suspension by itself, let alone all together.

It is important for us to tackle these types of organizations as we want to serve as an example for other Decentralized Autonomous Organizations (DAOs), which don’t have the governance structure nor means to fend off these attacks.

We are in a new industry, which the public at large mischaracterizes on a daily basis. This will only change once we are able to set the precedent and stand up for ourselves. Hence, we invite other members of the crypto community, alongside our own CRD Network participants, to lend their support and build the industry that we deserve.

However, before we are able to rally support to build this new tomorrow, we must first clear our name. 

Now that the allegations have been made, we will be addressing them point by point in this Proposal, so as to regain your support, actively defend against these defamatory statements and lay the groundwork for a future in which we can develop without being attacked despite being in favour of the common good.  

DEFAMATORY STATEMENTS WITHIN THE ARTICLES


At first glance, the articles might seem convincing, as there are certain half-truths baked into the tale. This is necessary for a story to be believable, it must have enough elements that seem to be plausible. As such, we can’t dismiss every single point outright, but we have to address them in detail and provide nuance.

The statements come in various forms but broadly speaking they fall into 3 categories:

  • Misunderstanding of the CRD Network’s system architecture (understandable, as this is a novel technology that bears outward similarities to other systems).
  • Half-Truths, which take some bit of information and twists it to mean something else than it was originally intended.
  • Outright Lies, these are demonstrably false statements.

So at the start of each section, we will add a parenthesis with the words “Misunderstanding”, “Half-Truth”, or “Lie” to represent the nature of the statement, and then at the end, we will tally them together to maybe try to understand the intent of the original article.


1 - Misrepresentation of the relationship between CRD Network and Tacoswap community.

Misunderstanding & Half-Truth.

The CRD Network pairs with influencers in order to create use cases for their respective communities via a partner company known as DLTify. In other words, influencers are provided with the resources necessary to build apps that help improve the CRD Network’s DeFi offering. Tacoswap was one such use case. 

This is taken to mean that the CRD Network controls the influencers, and manages the apps. This is false. 

All interactions between the CRD Network and the influencer parties are governed by non-agency and non-association contracts, hence Virgo Limited (the company through which the influencers operated) is a non-member of the CRD Network. There are contractual obligations between the two parties, as one might expect (referring to profit-sharing from the app’s revenue, for instance), but they’re separate entities wholly responsible for their own decisions and consequences thereof. 

2 - Infographic summarizing the movement of funds.

➥ Half Truth & Lie.

In the articles, there is a chart showcasing alleged financial movements within the CRD Network blockchain. 

We are not here to defend third parties and leave the respective authorities to decide on the correctness of their actions. The transactions are verifiable on the blockchain, this much is true - the blockchain records all. 

Yet, for the exact same reason, it should be obvious that the infographic is mislabelled and inadequate as the deal types and wallet movements would have vindicated our name. 

We can confirm that none of those wallets belongs to the CRD Network. We know full-well whom they belong to, but data protection regulation ties our hands in regards to divulging confidential financial information regarding them, including their owner’s identity.

Consequently, given that the inclusion and use of the CRD Network logo implicates and associates us with the actions of implicated third parties, we view this action to be negligent incompetence at best, or willfully malicious at worst. 

This would be equivalent to accusing an email provider for sending an email that may be grounds for investigation. While we try to limit the scope of pernicious actions, controlling every transaction that happens within our network would be an intolerable breach of privacy and trust for our users. 

3 - The CRD Network is presented as the token of an exchange platform and is alleged to not be sold anywhere except a Telegram group.

➥ Half-Truth and Lie.

The CRD Network, the company formerly known as Cryptaldash, started as an aggregator of liquidity providers and exchange flows from other centralized exchanges. So it did start as an exchange platform.

Nevertheless, between 2017 and now, the crypto exchanges have become centralized. As such, as of 2018, the CRD Network pivoted to be a DeFi platform that bridged the crypto and traditional fiat realms.  

A cursory look at our website or any content on any platform should’ve made this much clear!

As for the allegation that the CRD Token isn’t available anywhere, this is a particularly strange one. The CRD Token has been available on most major decentralized exchanges like Uniswap and Sushiswap since their inception, and we’re constantly looking for new places to expand into, so we will soon be available on Tacoswap.

It bears mentioning that just in the Sushiswap CRD Token liquidity pool there are over $1.7m of liquidity depth.

4 - Three addresses own over 90% of the CRDs in the contract.

➥ Misinterpretation, Half-truth and Lie.

Yes. This much is true and we make no secrets about it. We said in the White Paper that the CRD tokens are pre-minted and there is a firm cap of 1bn CRDs.  

The implication that this is some uncovered secret is spurious and extremely misleading as to our intent. Especially given that this is publicly available information. The CRD Token is primarily used for operating in DeFi, it’s an access/utility token, so wild fluctuations aren’t good for our goals. As such, the distribution of the token is actively supervised and follows a strict set of guidelines before its disbursed in any form. 

Furthermore, we’ve publicly stated the wallet addresses and explained their purposes on other occasions. Nevertheless, for the sake of thoroughness, this was the Wallets’ state as of the 13th of April 2021:


public tag:

[Wallet 1]

purpose:

Reserve Fund, Dev Team, Operations Fund, Settlement Payments 

address:

0xa5a6707dbad87609c8b21270653e7a0490e9bf21

percentage:

70.22%

amount:

702.19m   

value:

$9,307,946



public tag:

[Wallet 2]

purpose:

A Smart contract of people staking in TacoSwap

address:

0x7f7710e0c7c5c0ff043963dd22c3988e8bdb7acc

percentage:

14.51%

amount:

61,331m

value:

$1,922,830



public tag:

[Wallet 3]: SushiSwap: CRD

purpose:

SushiSwap Liquidity Pool

address:

0xcaaa93712bdac37f736c323c93d4d5fdefcc31cc

percentage:

6.13%

amount:

61.331m

value:

$812,985


Wallet 1 was the genesis wallet of the CRD Token program. Meaning that it is logical that it would contain the largest portion of CRD Tokens, given that this is where the initially minted tokens were deposited. 

Once the related wallet Proposal has passed it will be divided up into multisig wallets with variable purposes, each with a separate utility in the business purpose, as follows:


[Wallet 1] 

I

Public Tag:

CRD Dev Fund

Quantity:

100m

Address:

0x4957871EDAEBDe721364e2038bfD142e23D85F55

II

Public Tag:

CRD DAO Operations Fund

Quantity:

80m

Address:

0xa08DBE4FC76d2E72C3eAFC7f282D8C3D213A6000

III

Public Tag

Founding team allocation vested in 2019

Quantity:

100m

Address:

0xc6951842CF1E79FcDC37348B1aEbeb68AD391b99

IV

Public Tag:

CRD DAO Reserve Funds and misc

Quantity:

422m

Address:

0xEA01645548f37D63B48d4226C1b489c13F1f4519

Status:

[locked] 


Most of these funds will not be utilized for the foreseeable future. It’s also worth mentioning that [Wallet 2] and SushiSwap: CRD are not directly under the CRD Network’s control as they remain locked in liquidity pool Smart Contracts.

Each disbursement from the wallets must comply with the Dev Fund use policy agreed by the CRD Network stakeholders. 

5 - ALLEGATION “an error in the Cryptaldash source code that allows founders to create as many new CRDs as they want”.

➥ Lie.

This is demonstrably false, as you can check by following the instructions below. But even assuming that were the case, there would be nothing to be gained from exercising said glitch.

Instantly doubling the supply of CRD would be impossible to hide. Furthermore, present and foreseeable demand in the medium term for the CRD Token simply would not be able to cope with such a massive oversupply. In other words, even if it were done and by some miracle, nobody noticed and we tried to sell them all at once, it would permanently crash the price. 

It bears saying that the CRD Network is so concerned with price fluctuations that all holders that have above 1m CRD are subject to an anti-dumping agreement.

The minting function of the contract has been inactive since 2018 and the contract has been closed for minting as well. You can easily check for yourself. Follow the Etherscan link and then go to the tab CONTRACT > READ CONTRACT > 1.minting: Finished then you’ll see “True bool” which means that code has been executed. 

Put simply, this allegation does not work either from an execution standpoint, or from a practical standpoint as the net effect would harm the CRD Network more than it would benefit us. 

For it to even have a chance of working we would already need to have a very robust user base and be willing to instantly destroy our years of hard work for what is even in the best of circumstances a bad tradeoff.

6 - Alleged intentions to deceive about implied associations with Dash.

➥ Lie.

The articles purport that the CRD Network, or rather its prior Cryptaldash iteration, claimed association with the Dash organization, which is in charge of the operations of Dash (a digital currency). No such association has ever taken place, nor have we ever claimed that there was one.

Early iterations of the business did intend to offer liquidity pairs of Dash in the original Cryptaldash exchange but this never happened, nor was it ever earnestly attempted. Hence barring superficial name similarities in the initial inception of the business, there’s no association, nor was this ever claimed to be the case. 

7 - Allegation “The CRD project site has many shortcomings, except for the affiliation part.”

➥ LIE. WE HAVE THE BEST WEBSITE EVER!

Our web developer has been summarily fired upon reading this...

Jokes aside, we are working on our website and improving it constantly. That said, we don’t have an affiliation section at all, nor do we have an affiliate program, so this is certainly a strange criticism.

We welcome the journalist to supply information about this alleged affiliate program.

8 -  Misinformation on Founder Amine Larhrib.

➥ Lie.

Despite being a rather short section of the overall piece, it gets a lot of basic biographical details wrong. 

For example, he did not move to Marbella in 2017 to start Cryptaldash. At the time he was still living in Hong Kong. It wasn’t until 2019 that he moved to Marbella as he wanted to live closer to the regulatory seat of DLTify, a technology firm he owns, which is in Gibraltar.

The section also goes out of its way to make it seem as if Amine has disappeared from the internet. We can only speculate what they mean by this profile wedged amidst unsavoury dealings of people who’ve run away with assets entrusted to them. But despite not being journalists ourselves, we at least have the journalistic integrity to not extrapolate on mere speculation.

However, the CRD Network Founder Amine Larhrib is still very much active and visible on social media. For instance, he is posting weekly Linkedin articles on a variety of topics, including entrepreneurship, cryptocurrency, technology and economics, etc.

9 - Regarding Tacoswap.

➥ Half-Truths and Lies.

TacoSwap is a decentralized exchange app built by DLTify which is based on the source code of Sushiswap, which itself is built on the source code of Uniswap. It is true that one of the main ways planned to attract users is by staging what is commonly referred to as “a vampire attack.”

Despite the sinister-sounding name, what this means is simply offering higher yields on staked assets to participants in a rival system. It’s a common growth strategy in the industry, and the organization it was aimed at - Sushiswap - first grew by doing the same thing to Uniswap.

Tacoswap is only partially linked to the CRD Network in that it utilizes CRD Tokens as access tokens, but they’re not exclusive to it, as you can use Ethereum, Sushi Tokens, LP tokens, etc.

Presently it has its own growing community, as can be found on its Telegram group. 

10 - Statements related to WACEO Organization.

➥ Misinterpretations, Half-Truths and Lies.

This section described the WACEO as a non-profit organization designed to help entities in the DeFi space be regulatory compliant. So far so good.

However, then it begins to craft a tale wherein it was supposedly the brainchild of one of the paired influencers. This is false, the CRD Network pairing with influencers is a recent strategy, so much so that we are still compiling the best-practices guidelines given some distasteful initial experiences.

The WACEO predates the influencer program by almost half a decade. 

Presently, the WACEO is tasked with overseeing the development of DAOs from a regulatory framework and providing legal aid to members of the organization. 

It is admittedly a curious state of affairs wherein the WACEO is overseeing the actions of the CRD Network - both of which have been implicitly controlled by Mr. Amine Larhrib. This happened because of his pioneering attempt to better understand the requirements for providing the regulatory framework from both ends.

The WACEO grew and pivoted alongside Cryptaldash, and then the CRD Network. This organizational structure was borne out of necessity, owing to sparse resources and still being a new player in the market.

Nevertheless, this has rightfully beckoned the criticism that WACEO might not be a neutral organization. This is a fair reproval now that WACEO has gained expertise, and is staffed by various legal professionals. 

As we grow as an organization and in order to gain the public’s trust we must eliminate any potential conflict of interests. To that effect, Amine Larhrib will step down as WACEO Director and take a less immediate role in the day to day operations of said organization. 

Furthermore, in order to position itself to be able to operate effectively, WACEO will restructure its governance board to guarantee independence from any undue influences. Therefore, the CRD Network will retain its WACEO membership. 


SUMMARY

Final Tally:

➥ Misinterpretations = 3

➥ Half-Truths = 6

➥ Lies = 9


We can only guess at the mindset behind writing these articles. But at least our rudimentary tally would seem to indicate that there might have been at least some willful obfuscation of the truth, or the journalists might have been misled by their anonymous sources. 

It’s perfectly logical why purported news sites might be willing to give the benefit of the doubt to unvetted sources - drama sells. Furthermore, unlike when you defame traditional organizations, writing poorly sourced statements about crypto-projects will get you clicks, but it’s unlikely to lead to any court proceedings.

Hence this is a means by which you can write clickbait with the veneer of truth and journalism, but without actually having to be rigorous about the sources.

Despite the active defence of our cause, we bear no grudge towards the journalists. We believe that there is a good chance that they might have been misled by those with short selling contracts against the CRD Token and thus would greatly benefit from a news organization libelling us.

However, we do want to clear our name, which is why we are making a Proposal regarding the publishers of this material. We would like a retraction of the piece and would be glad to set the record straight if given the chance. 

We gladly invite the press to make contact with us via our email: press@crdtoken.org

A SPECIAL NOTE ON INFLUENCER PAIRING

One of the key operating goals of the CRD Network is to find use cases that communities actually want to use. Far too many startups design technology without having a clear audience in mind.

We think this is the wrong way of looking at things. So we’ve decided to partner with community leaders to build technology that uses the CRD Network and thereby we both benefit. The influencers receive the means of building their own business, while we gain network users.

It sounds like an ideal set of circumstances - and it is if everything works right - but this is the real world we’re dealing with. Due to the rapid nature of our scaling, we’re bound to accidentally pair up with people that in hindsight might not have been the best fit.

Furthermore, if you’ve ever looked at social media, drama is more or less guaranteed if you even indirectly associate with an influencer. So, unfortunately, some of that drama will occasionally fall back on us, despite our best intentions.

Depending on the severity of this drama we might be forced to cut ties with particular influencers. But this will happen on a case by case basis. 

Along with the WACEO, we are creating best practice guidelines so that this will not happen in future. We will shortly be releasing those guidelines, so as to best protect the CRD Network going forward.

However, for now, suffice it to say that any future influencer that pairs with us will have to, at a minimum, meet these two primary criteria:

- An evaluation of fitness and properness.

- Strict adherence to best practices.


At its core though, we remain convinced of the validity of this business model, as we are able to reach a community that we might not have been able to reach otherwise. The CRD Network is about empowering the individual, no matter their provenance. 

And so we’re glad of being able to serve and educate a growing pool of people from all manner of backgrounds. We are excited about the future, and we hope you are as well!

OUR ROLE IN THE FUTURE OF THE INDUSTRY

As pioneers in the industry, we have faced many obstacles to develop. This is just one of many challenges that we are bound to face and overcome. 

However, we have always prioritized the interests of the CRD stakeholders. As our community grows, and the major stakeholders change, we are likely to face new regulatory frameworks that we will have to adhere to. 

This doesn’t apply to just us, but the crypto industry as a whole. And thus it is essential that we are proactive with establishing good relations with lawmakers and regulators to build a business environment that promotes the common good and provides DAOs a legal standing via the WACEO. 

The CRD Network is pioneering the distribution process, capital formation process and the legal formation of the DAOs as legal entities. Our actions today will have a ripple effect on the industry as a whole and so we must not only act for our wellbeing, but the precedents we set for everyone that follows.

This is partially why the CRD Network is a strong proponent for the WACEO, and its role in creating regulatory frameworks, as they can represent us to legislators from the vantage point of experience and providing justice to innovating entities, rather than misinformation and misunderstanding.

What we do today, will colour the future that is to come for everyone in the industry. So we must be careful with this implicit responsibility that has been entrusted to us. 

ACTION PLAN

As stated before, we bear no ill will towards the journalists. We believe that there is good reason to suspect that they were misled by actors who have bet against the financial success of the CRD Network by short selling their tokens.

Hence, if all the Proposals below are passed, this would broadly be our plan of operations with increasing remedial steps:

  1. Ask for a retraction and apology by the publishers of this unfortunate libellous attack and provide them with a 15 day grace period to do so.
  1. If no correction is issued, assign legal representation in the US and EU to make a case to Google and associated monetization parties enabling the misinformation to propagate, to drop the publishers as clients and thereby have them lose access to advertising.
  1. If no remedy is to be found through these means, we will pursue the matter to the full extent of the applicable law, in all evoked jurisdictions, against the publishers of this misinformation, along with the individual short-sellers who initiated the libel campaign, as they both jointly profited from the ensuing reputational loss by the CRD Network. There is a clear case to be made with the available information that they have profited from libel, which is a crime in the relevant jurisdictions. However, we will first pursue their monetization features, chiefly by flagging their behaviour to their advertisers, as we believe this was the main motivator behind aiding and abetting these abuses.

PROPOSAL

Due to all the points that we have mentioned in prior sections, we believe that we have been the victim of an orchestrated libel campaign to profit from our reputational loss, as we were perceived to be unable to retaliate in kind.

Furthermore, due to how our founder’s Moroccan background was framed and awkwardly wedged in the article as if to imply, but not outright say, something about his moral character we believe that this might also be motivated by what in the Francophone communities is called délit de faciès, or “face offence”.

If we are to protect our community, and indeed the industry as a whole, from any such further malicious attacks we must defend ourselves, make an example of this attack and set a standard, for us, and for the whole industry.

We want to be the DAO that fights back, which champions against the abuses and injustices of existing practices. But we can’t do it alone.

To that end, we will be following the governing and educational principles set forth by https://firstdraftnews.org/ a non-profit which seeks to protect communities from harmful misinformation. And we also need your help…

We submit to you four proposals up for a vote, which we will enact as soon as we receive community approval to do so. 

1 -  Demand a correction by the editors as proven by the points above within the next 15 days following the adoption of this proposal;

2 - Nominate WACEO to be able to choose and direct legal representation in the USA and EU;

3 - Allocate 10m CRD (c.$140k) to be used for legal fees related to the pursuit of claiming damage. These fees will be paid in accordance to the Dev fund policies; and

4 - Any financial restitution from punitive action caused by the defamatory content will be used to repurchase CRDs and thereby be disbursed back to the community through an increased CRD Token valuation.

The CRD Network will continue to explore and develop technology that broadens the financial capacity of all, no matter their background, creed or education level. We believe in interacting with people in the way that they talk, through social media and frank discussions.

Most important all though believe in open access to technology, and lies will not stop us from pursuing that truth.

We reiterate our invitation to the press to make contact with us via our email: press@crdtoken.org

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