Storm Returns, Nostr Protocol Founder Calls $NOSTR "100% Fraud"

Nostr Assets Protocol is back in turmoil.

On the evening of December 3, Fiatjaf (@fiatjaf), the founder of Nostr Protocol, posted a Chinese on social platforms, saying: "Nostr Assets Protocol is a fully managed service in the name of Nostr, which is an affinity scam. The Nostr Assets Protocol has nothing to do with the Nostr protocol itself, and is only borrowed from Nostr in its name. 」

This public announcement also puts Nostr Assets Protocol back in the spotlight of the crypto community.

First Speech by the Founder of Nostr Protocol: Nostr Assets Token “100% Fraud”

According to BlockBeats, this is the first time that Fiatjaf has spoken out about the Nostr Assets Protocol.

In this public statement, Fiatjaf also reminded people not to deposit any sats on the Nostr Assets Protocol platform: "The token issued on the Nostr Assets Protocol platform called Nostr is 100% scam, and has no relationship with the Nostr founders or the [Nostr] team. 」

In fact, the Nostr protocol originated in 2019. On November 20, 2019, fiatjaf began working on the Nostr protocol, hoping to create a simple, open, global, decentralized, and censorship-resistant social protocol.

On his blog that day, he wrote: "Nostr is the simplest open protocol, based on cryptographic keys and signatures, not relying on any trusted central server, not relying on P2P technology, and being able to create a censorship-resistant global social network once and for all. 」

Related Reading: Nostr Founder Calls Lightning Network a Scam, What Happened to Lightning Network?"

The Nostr Assets Protocol project, according to its official introduction, is a “LightningFi on Nostr” that helps users “send, receive, and trade Taproot Assets and BTC”. The project only opened its official Twitter account in April of this year.

On the surface, there is a certain degree of correlation between the two, which was also stated in the official statement released by Nostr Assets Protocol in the early hours of this morning.

Nostr Assets: We are an escrow solution and should not be misconstrued as a fraud

In the clarification statement issued by Nostr Assets Protocol in the early hours of this morning, three key points were noted.

First, Nostr Assets Protocol stated that its main goal in building the Nostr Assets ecosystem was to “enable builders to create business use cases on the Lightning Network and Nostr”, and that Fiatjaf’s allegations of “fraud” were unsubstantiated because Nostr Assets Protocol was a “custodial solution” and should not be misconstrued as fraud.

"Many L wallets (including Satoshi Nakamoto) provide users with custodial wallets to take advantage of the Lightning Network, which is considered fraudulent, and they are essential to providing users with a superior UIUX. 」

Second, Nostr Assets Protocol also notes that $NOSTR have no relationship with Nostr’s core developers, and that Nostr Assets Protocol “leverages Nostr, Taproot Assets, and Lightning in its build to make it relevant to Nostr”.

Finally, Nostr Assets Protocol also expressed its desire to partner with the Nostr team: "Nostr is a decentralized, open-source, and censorship-resistant relay network that anyone can build on. This incident was a misunderstanding due to a communication gap, and we wanted to connect with the Nostr development team to improve collaboration and foster a better Nostr ecosystem. 」

$NOSTR is about to open, and the site has been shut down for maintenance several times before

BlockBeats observed that Nostr Assets Protocol’s Fair mint from November to December may have major new news in the next two weeks, and some crypto community KOLs have also begun to promote tutorials.

It may be that while $NOSTR is gradually heating up in the community, the “fraud” accusation against Nostr Assets Protocol by the founder of Nostr Protocol has attracted widespread attention from the community.

However, in the past, Nostr Assets Protocol has repeatedly caused controversy in the community about its team background and project reliability due to website shutdown and maintenance.

On November 7th, the same day as the announcement of the upcoming launch of Taproot Assets and the Fair Mint feature, Nostr Assets Protocol stated on its social platform that the website was temporarily closed for maintenance due to load reasons.

From November 13th to 16th, Nostr Assets Protocol announced three times that it would shut down its website and maintain it, which also sparked controversy in the community that the Nostr Assets Protocol project had problems.

Related Reading: Nostr Assets Resumes BTC Deposits, Multiple Shutdowns for Maintenance Cause Controversy

BlockBeats will also continue to pay attention to the dispute between the founders of the Nostr Protocol and the Nostr Assets Protocol.