Troubled times produce heroes, and bear markets are full of scams.

July 15,CoinDesk reports5ire, a one-layer blockchain network, raised $100 million in Series A financing from Sram & Mram on the same day, with a valuation of $1.5 billion. In a bear market, such a financing scale and valuation are relatively shocking, but 5ire’s financing did not involve well-known institutions in the industry. With curiosity and doubts, PANews had an in-depth understanding of the relevant content of 5ire and found that the project was full of doubts.

The financing information is inconsistent, but the public chain wants to conduct an IPO?

5ire's official Linkedin shows its own link to Crunchbase, which is a database containing startup founders, employees, financing information, etc.5ireChain's Crunchbase pageIt shows that 5ireChain’s Series A financing was announced on February 14, 2022, invested by The Global Emerging Markets Group (GEM) and MH Ventures, with a financing scale of US$100 million. This data is not consistent with the investment institution and date of the A round of financing announced on July 15.

Continue to look for 5ire's financing news in February this year, PANews foundTHE ECONOMIC TIMES reported on February 15According to the report, 5ire announced on the same day that it had obtained an "investment commitment" of US$100 million from GEM Global Yield (the former GEM), and planned to use the funds to seek an IPO. This statement was also verified on 5ire's official blog. On February 18, 5ire's official blog published an article titled "5ire raised $100 million from GEM Global Yield LLC", which did not mention the investment It is an investment commitment.

It can be seen from this that 5ire’s A-round financing reports in February this year and now in July show different investment institutions. As a public chain project, it is also very strange to say that it is seeking an IPO before it is officially launched.

The problem lies in the "investment commitment" of GEM (GEM Digital and GEM Global Yield). According to Chain Catcher, GEM has invested in at least 16 encryption projects in the past six months, including Venice Swap, Naetion, KaJ Labs, Unizen, The single investments of Unizen and H2O Securities both exceeded US$100 million. Most of the projects invested by GEM have no bright spots, and they are basically announced in the form of investment commitments, rather than direct investment, that is, they will not pay directly, but will cooperate with the project party to send out good news and sell after pulling the market. , to complete and distribute the interests of the project party.

GEM's recent investment projects

The above information shows that 5ire may have been "dove" once by GEM, or performed a joint "performance", and in the cooperation with GEM, 5ire's official blog did not state that this is an "investment commitment". As of July 18 The date has not been revised, and there is suspicion of releasing false good news.

Sram & Mram, the agency that invested US$100 million in 5ire this time, is a company that provides solutions and services. Its official website, Twitter, Facebook, Instagram, Linkedin and other channels did not report on the investment. Sram & Mram's official Twitter has only 120 followers. Is this another show?

5ire has already reached out to retail investors. Every time PANews logs in to 5ire's official website, a pop-up window will appear to apply for the white list of investors. If the financing of 100 million US dollars is true, there is no need for 5ire to be so anxious to raise funds from retail investors through this marketing method.

Project official websiteWhitelist applicationstill remains inLinks to Token Models, and the content inside is not consistent with the announced financing amount and valuation. As shown in the figure below, according to the relevant content, 5ire plans to raise a total of about 22 million US dollars in funds. The total amount of 5ire tokens is 1.5 billion. If calculated based on the last round price before the public offering of US$0.0843, the valuation is about US$126 million; if calculated based on the third round of public offering price of US$0.3, the valuation is about US$450 million. It is completely different from the valuation reported by the current media.

first level title

Claiming to be the "fifth generation blockchain", but only writing popular science content

Continue to look for information about the project on the official website. Compared with other blockchains, 5ire is characterized by sustainability and can meet the goals of sustainable development of the United Nations. 5ire's consensus mechanism regards sustainability as one of the most important components. Its consensus is called SPoS. The weight of a node's packaged block depends on four factors: pledge, reliability, random voting and sustainability score. The node with the highest score will be responsible for the next 12 hours of block packaging. This can be thought of as a variant of the existing PoS consensus mechanism, where a sustainability score is added. So, how is 5ire's sustainability score calculated?

As described in the white paper, the Sustainability Score is composed of Environmental, Social and Governance (ESG) scores. Initially, this score will be assigned based on data obtained from trusted institutions. After the 5ire ecology is stable, there will be a decentralized mechanism to assign and update sustainability scores, allowing nodes to regularly update participants' sustainability scores. The following table is the judging factors of ESG.

In addition, 5ire also introduces the concept of nested chains, similar to parachains, to solve the scalability problem. The nested chain is created according to the demand of the network load. Once created, it will continue to generate blocks on the nested chain until the chain is added to the block of 5irechain. The structure of the nested chain is shown in the figure below. Each chain corresponds to a transaction pool. Once the number of transactions in the transaction pool exceeds the threshold, the transaction pool will be divided into two pools. When the number of transactions in the transaction pool drops, it can be merged into one chain again.

Because of the concept of sustainability, 5ire calls itself the "fifth generation blockchain", corresponding to the "fifth industrial revolution". It believes that the focus of the fifth industrial revolution is to guide technology to serve human beings, and 5ire can solve the problem of the environment Sustainability issues to build a user-centered sustainable ecosystem. In our understanding, the industrial revolution corresponds to a breakthrough in technology and can bring about an increase in efficiency. However, 5ire only introduces the concept of sustainability, and it may be inappropriate to call itself the next industrial revolution.

Technically, the concept of parallel chains has been applied in Polkadot. Because the number of chains in 5ire is variable, the development difficulty of this solution may be higher than the current common expansion solution.

In 5ire's official blog, there are a large number of articles used to introduce basic concepts such as the interstellar file system, data security, DeFi, and the working principle of Merkle trees. These articles do not mention 5ire-related content at all.

The partners and investors announced on the official website contain 68 logos, but the relevant logos of Sram & Mram and The Global Emerging Markets Group mentioned in the above-mentioned financing news were not found, while DAOStarter, ARDURA and other logos appeared repeatedly. This not only increases the possibility that the financing news is fictitious, but also shows that the project party is very careless.

When the tide goes out, no one wants to continue swimming naked unless there is a problem with the person. The encryption market is full of scams and insiders, and PANews will also carefully screen out fake projects and see the light of day.