TRON (TRX-USD) is a household name for anyone who has immersed himself in the cryptocurrency of the past with Bitcoin and Ethereum. Because? Because it seems that those who love TRON can not stop talking about TRON. And this is certainly true for the person who loves TRON more in the world – its founder Justin Sun.
Sun is a bit of a Chinese prodigy – the youngest graduate of the field of production of Jack Ma. And has brought his talents into the cryptic world for a few years, behind his TRON currency and his massive plan to be the main currency of a new era; a decentralized online world.
What this means for investors is that looking at Sun and TRON closely could lead one to think of a possibility of that happening. Because if it does, if the TRX coin can reach mass use the way Sun talks about it, we will see a cryptographic currency become part of a global range of games, entertainment and peer-to-peer sharing.
The following is an examination of the investment opportunity of TRON – for a currency labeling scam and others as a label currency that can redefine the way we interact and exchange currency within the digital Internet.
First, the break. Currently, the TRON token is traded at around $ .033 (or .00000044 BTC if measured by ratio and / or Satoshi) with a daily trading volume that averages around $ 200 million per day. It ranks 11th in the encrypted market and, unlike many other currencies at this level, is actually up compared to the numbers of the first February (6 months back), although down from the January high of almost 20 cents . Here is a TRX / BTC chart courtesy of Tradingview.com
That said, the last few months have really been noteworthy for TRON. First, he made a token exchange, which moved TRX away from the Ethereum blockchain and alone. This is a considerable effort, and it was a positive sign that TRON has obtained 30 exchanges to support this exchange (token holders could move their tokens into that exchange and the exchange would exchange the old tokens for the new one). Several big-name criptos have swapped like this now; and is considered an important obstacle to a currency before it can reach the applicability of the real world. The price has seen a brief growth before the swap and a short fall after
With its launch, TRON is also working through its internal governance systems, led by those calling Super Representatives, which are parties with control power and stabilizing the network. It is a good strategy both to block coins and keep responsible people in charge, even if it does not say much for the decentralization mission. The SRs are also rewarded for each block, and many (in order to support the votes of TRON holders) are offering to reinstate their rewards in the community. So, there is a small vibrant economic ecosystem inside
The biggest news that TRON did recently was the purchase of BitTorrent; a peer-to-peer file sharing service that has earned a reputation over the years. That reputation has often been in the form of legal battles, debates on copyright infringement and the like. BitTorrent is a platform that allows anyone to share files with the anonymous internet by downloading pieces of files from anyone who "sows" that file. It happened that many files that people wanted to share were pirated movies or albums.
So, why does TRON want with BitTorrent and why, as Coindesk points out, everyone can not stop talking about it?
Because BitTorrent, despite being open source and completely capable of copying is two things: (1) a crazy driver of internet traffic (at its peak, in 2004, about 25% of Internet traffic passed through its platform of file sharing according to some estimates – this has fallen well below 5% from many estimates now with the increase in streaming services like Spotify (NYSE: SPOT) and Netflix (NASDAQ: NFLX)) and (2) the creator of a decentralized view for the Internet (or, in this case, the sharing of files on the Internet, even if torrenting as a deed still takes its fair share of online traffic). Thus, TRON gets an important brand recognition and a robust user base. These are both vital to Sun's vision that he can now take his token and place it in an already existing ecosystem.
That is exactly what TRON has done at the start of this year with its partnership with Game.com, a leading Chinese gaming platform that issues its own GTC-USD token. The involvement of Game with TRON is a potential reason for the increase of the GTC price by over 200% in April of this year; showing us how powerful the network is and the TRON investor right now.
And the latest news comes today when TRON launched its "virtual machine" that allows developers to use its technology to test visions for use. These developers will have a month (until August 30) to play in the sandbox environment before the platform opens completely. What did TRON provide with its virtual machine? A developer / coder field completely built on the blockchain; compatible with Ethereum (which means that an encoder can transfer its code to this portion) and thoroughly analyze the functionality and speed and cost of the transaction (all with a beautiful appearance, costs are lower than ; ETH and transactions per second also exceeded Ethereum). Once tested (and 30 days if it is a good amount of time), decentralized apps will be launched on TRON, and will start its campaign to capture more and more daily users and token spenders.
The point here is on the investment side, and clearly, there is interest. Together with the launch of this (and previous news), TRON has seen a 40% increase in daily trading volume. BitMEX, an extremely popular trading platform, has launched TRX contracts for trading and Changelly, another platform, has launched the option to purchase TRX with a credit card.
So, is TRX a purchase? Well, there are a lot of interesting things happening here. TRON is undoubtedly on the most active teams in the crypts, and behind Sun, there is more technical talent in the Chinese team here, which is important for these new coins. The TRX coin is light enough to fit into video games or phone applications, something Bitcoin will have to struggle with – both in terms of prices (having to figure out how to send .00001 BTC on XBOX is a challenge) and the lack of a team who can sign contracts to implement these tokens in a game roadmap.
I think there are important things that TRON must understand; how to actually show a symbolic value for the owners (the Super Representative system involves voting but is still technologically complex for an average investor). So, what is the incentive to keep TRX. For me, it's the promise of the kind of currencies that can and will feed the new Internet (and this is an Internet connected to everything: the phone, the virtual reality machine, the programmed.) Which currency (or, probably, currencies) can be light enough to connect to that complex ecosystem. Well, TRX is a possibility, along with a number of other cryptos, but this has Sun, Chinese supporters and a lot of money to invest in. This is a company that has collected $ 70 million in its ICO (and saw its symbolic price revenue from ICO $ .0019 to $ .03 today so the track record is good so far.
My opinion: I think the virtual The launch of machines gives TRX the opportunity to show real promises, but it will take some successful implementations, not just speculations to get there, the option of future BitMex will split some investors from the TRX while we witness the inevitable manipo market. term, I'm bearish on TRX. I've been sitting up a little since I bought it upfront and received some initial investor bonuses along the way. But I'm not ready to sell yet.
Because in the long run, I think you really have to keep your eyes on this. More than most other coins, TRX has the opportunity to become the currency of choice for the millennial player. BitTorrent is already an important name and TRON and Sun can introduce TRX as the currency that powers p2p sharing networks, the decentralization of Internet and gaming (think of Twitch, iPhone app, etc.), We will see TRX coins that fly all beyond the place. And, in the long run, this could mean a TRX price 5-10 times what we see today. But we must see the implementation. So, you will have to follow.
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Disclosure: We are / are long TRX-USD.
I wrote this article by myself, and expresses my own opinions I am not receiving any compensation for this (other than Seeking Alpha). I have no business relationship with any company whose title is mentioned in this article.