TRON (TRX)–Last week, we detailed the precipitous rise and fall of TRON that saw the currency skyrocket from 0.002 USD to over 0.30 in the span of a month. The subsequent sell-off was as severe, reaching a new low for TRX valuation in March as just below 0.025 USD. In that time, TRON has become one of the more volatile and controversial currencies relative to the rest of the market. However, much of the price swing can be attributed to market factors largely outside of the control of founder Justin Sun and the efforts of the TRON Foundation. TRX caught fire just as the crypto market was reaching a crescendo in its bull run. Last December was a time when legitimate overnight millionaires were being minted on a regular basis, and TRX was the next currency in line to catch the interest of so many amateur investors and crypto-outsiders speculating on the massive price gains. The selloff, while dramatic, was about as textbook of a price-pullback as could have been expected for an industry massively overvalued, and bloated with weak hands who had no idea what they were investing in.
Since March’s low of 0.025 USD, TRON has paved the way for a resurgence in the cryptocurrency marketplace, up over 12% in value over the last 24 hours (as of writing). TRX has appreciated 200+% in price since March’s last low, giving confidence in investors that the market is responding to the favorable news and action surrounding the TRON team and Main Net launch. March saw the successful implementation of the Test Net update, putting TRX in a position to operate its own network separate from the typical Ethereum-based ERC-20 token. Main Net will constitute a more significant development for Justin Sun and the TRON team’s currency, marking the official launch of the TRON platform and paving the way for the targeted disruption of the entertainment industry that could follow over the coming years.
T-21 days until Mainnet launch! #TRON will be one of the most competitive mainstream blockchains with the most users. We graduated #1 from the ETH platform with 1.08M+ users, more than OMG and EOS combined. ETH was just a prelude. Now for the main act 🎵😎 $TRX pic.twitter.com/Oyj4XN1T7l
— Justin Sun (@justinsuntron) May 9, 2018
Most of the excitement over Main Net is not just in the potential for what TRON can accomplish, but recognition by the cryptocurrency community in a project that is establishing substantial goals and meeting deadlines. Without a doubt, TRON will run into hiccups along the way to full Main Net operation, but thus far the team has demonstrated an ability to not only handle the magnifying spotlight of crypto-based scrutiny, but thrive in the face of massive criticism that plagued the currency through the start of the year. For all the detractors claiming TRON to be over-hyped vaporware, driven by the marketing of Justin Sun, the development behind TRX has given the appearance of a strong contending currency that is actually going to accomplish use and utility in the real world. The partnership between TRON and Xu Le’s Game.com has been well-established for months. With the official launch of Main Net, TRX will be able to reach its full potential in gaming–one of many industries the TRON community is planning to participate in.
Why Main Net is Big News for TRON
Warren Buffett. Bill Harris. Charlie Munger. The list of Wall Street-based cryptocurrency detractors is growing and becoming more vocal each week, particularly as the market starts to recover and march towards another all-time high (albeit, more responsibly this time–we hope). While Buffett has admitted to his ignorance of cryptocurrency in the past, he has still made frequent headlines with his harsh comments toward Bitcoin and crypto-investors. These critics all hold one thing in common: focusing on cryptocurrency, as a whole, exhibiting bubble-like conditions. Some of their arguments ring valid. It’s hard to comprehend how so many currencies, lacking any sort of real world presence, can command billion-dollar-plus market capitalizations. Instead, their comments are more indicative of what most investors in the market have come to realize: this speculative frenzy driving crypto prices can only last for so long. It’s not that cryptocurrency cannot command a trillion dollar market capitalization or bring widespread disruption to the financial industry and digital marketplace, it’s just not going to happen in the current iteration. At some point, adoption is going to become a real thing that equates to saturation. Amazon doesn’t need 100+ cryptocurrencies for their website, they only need one. The cryptocurrencies that are able to exhibit the most utility and ability to solve real world problems, are the ones most likely to command the massive valuations we are seeing today.
TRON’s Main Net positions TRX as a top contender currency in the shifting landscape of crypto. While Main Net gives TRX a native network to function on top of (and also opens the door for outside currency development), TRON still has the potential to be even more useful than traditional transacting currencies like Bitcoin and XRP. The features that Justin Sun and the TRON Foundation have been pushing for Main Net are also the ones most important for growth within the industry of cryptocurrency.
- Negligible fees. People are not going to transact in currencies that enact hefty tolls. The argument that crypto can save markets the traditional 4% fee imposed by banks on credit usage completely evaporates in the face of average BTC fees in the 5 USD range–and much higher during periods of congestion. Currencies that can demonstrate functionality without relying upon miner or other gatekeeper-based fees are the ones most likely to reach widespread adoption. TRON transactions cost users 0.00001 TRX, meaning a lifetime of TRON usage can be paid for with the consumption of a single TRX token.
- Ability to scale. TRON’s TPS is the most substantial feature to come out of the Main Net launch. Originally billed as 1000+ transactions per second, Justin Sun shocked the community with an announcement that TRON’s network would be capable of handling 10,000 tps with Main Net. While the average investor or layperson may not grasp the significance of TRON’s ability to scale, a market leading tps is necessary for the TRON network to tackle the entertainment industry in the vision outlined by the white paper. Even with a single industry like gaming, frequent, cheap transactions open the door to a massive level of development and innovation that would not be possible on a slower, more bulky network.
TRON’s Marketing Shows a Mature Understanding of the Industry
At this point in the development timeline, investing in TRX is as much making a bet on Justin Sun and the TRON team as it is buying a stake in the currency. In the past, such a claim would be met with derision and skepticism. Sun has had to endure harsh criticisms from the investment community over being a hype man for TRON and not actually allowing the currency to grow on its own merit. With the Ethereum AirDrop and the 2 billion USD Project Genesis Reward Pool, Sun and the TRON team are showing a more mature, nuanced approach to marketing their coin while still grabbing headlines. To put another way: TRON is growing in the right direction. The Ethereum airdrop, costing the company a paltry 30 million TRX against the billions they control, exposed TRON to a massive new community of cryptocurrency enthusiasts that hold a similar interest in what TRON’s network is attempting to accomplish. Sun has started ribbing Ethereum’s Vitalik Buterin as a friendly competitor to TRON, but make no mistake, TRX is looking to own the space of crypto-based networks.
Also, #TRON is in test net stage right now and we need more prestigious developers like @VitalikButerin to give us valuable advice and code review to make #TRON better and stronger. #TRX $TRX Please check Github: https://t.co/mr1u2etMSg https://t.co/GVHqWRTeNP
— Justin Sun (@justinsuntron) April 6, 2018
The Project Genesis Reward Pool marks a significantly more expensive endeavor by the TRON Foundation, but constitutes an investment that could pay massive dividends to TRON development and adoption in the coming years. The Pool is paying out 2 billion USD worth of rewards for various developmental contracts, bug bounty hunting, and a loan program that is sure to spur massive attention in the sector most valuable to TRX growth: developers willing to build applications for TRON use.
During our testnet launch, I announced that 1 Billion USD will be dedicated to the #TRON community rewards program. Now that number is 2 Billion! Welcome to Project Genesis. #TronPG $TRX #TRX pic.twitter.com/048Vu1OipT
— Justin Sun (@justinsuntron) April 14, 2018
TRON has come a long way in the short 9 months it has been on the market. Main Net is the exciting next step for the currency, but the real potential for TRON comes in the development that occurs after. With a growing list of partnerships and industry leading utility, it seems only a matter of time before TRX challenges the top 5 currencies in market capitalization.