TRON (TRX)–While the buildup to TRON’s release of Main Net and the official TRX public blockchain was one of the more hyped stories of last quarter, the aftermath of the launch has been comparatively quiet. TRON, like most coins on the market, has continued to fall in price, and saw little increase in valuation with the onset of Main Net. Rather than expecting the release to have an impact on the short-term pricing, the purpose of Main Net is establishing the scaffolding for TRON’s eventual network features.
It’s understandable for investors to be frustrated by the lack of price movement, but cryptocurrency rarely responds to innovation and technological improvement in the way a rational investor would hope. Instead, crypto is largely built on price speculation, with most investors looking to capitalize on positive news through selling, while buying in the buildup.
In the near-term, Main Net gives the appearance of a failure in terms of increasing the valuation of TRON. But long-term, the innovation will likely pay dividends, assuming the currency is able to grow and maintain relevance.
What Main Net Means for TRON
Prior to Main Net, TRX was another ERC-20 token, built upon the development code of Ethereum, but offered very little by way of innovation. Main Net brings a revolution to both TRON and TRX, providing a new, public blockchain for the currency to expand upon. Founder Justin Sun and the TRON Foundation have outlined the future of TRON as a platform for digital entertainment, encapsulating everything from content production to social media. With Main Net, TRON finally has the semblance of a working network, or at least a divining rod for the road ahead.
Without seeing much in the way of price movement (TRX has fallen almost 20% since the launch of Main Net), the newest update to TRON is more about what the currency can offer via future developments.
- Top of the market utility. TRX has set the bar for scale, by establishing a network protocol capable of handling over 10,000 transactions per second. TRON’s Main Net also imposes a transaction fee of only 0.00001 TRX, which means an entire lifetime of transactions can be paid for with the purchase of a single TRX token. Compared to Bitcoin, which saw miner fees rise to 55 USD at the beginning of the year as cryptocurrency reached its peak in adoption, TRON offers significant advantage as a transactional currency. However, the primary purpose of TRX is as a tool to facilitate movement on the platforming network. The utility of TRX allows for innovations as far reaching as micro-payments, and a potential revolution in the way online content is both marketed and monetized.
- Strong support from Justin Sun and the TRON Foundation. In 1759, famous British economist Adam Smith employed the term “invisible hand” as a feature that helped to guide markets to fruition. There was no single variable that could be tacked down for why trade, business and the engagement of commerce turned out to be so prosperous for nations, it just was. TRON benefits from a more overt application of Smith’s guiding hand, through the tireless efforts of founder Justin Sun and the TRON Foundation. While other cryptocurrencies and industry enthusiasts have bemoaned the presence of figureheads as further centralization, Sun and the team behind TRON are showing the importance of having a strong development presence. The TRON Foundation is not only responsible for the creation of Main Net, but also in establishing a $2 billion USD fund for incentivizing development and rewarding creators on TRON’s platform. Their marketing efforts alone have done more for the TRX brand than any individual investor could imagine.
While Main Net did not bring the valuation boom that many TRX investors were hoping for, it has established TRON as a competitive technology in the growing cryptocurrency movement. The bear market of 2018 and this past weekend’s severe downturn in market valuation has overshadowing the strides being made in terms of innovation that crypto has been undergoing.