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Behind The Coin: Tron $TRX

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Tron $TRX, one of the most talked about coins in cryptocurrency; love it or hate it, if you invest in crypto, you’ve seen the name. Of all of the coins I have invested in or researched, Tron is without a doubt the most misunderstood coin. Those who support it are sometimes confused by some of its purposes, while those who oppose it, bought in to the FUD and rumors and made the decision to have no part in it. We’ll break down all parts of Tron in an attempt to give both sides an understanding of what it is Tron sets out to do and the very long journey it has ahead.

The Team:

Tron was founded by Justin Sun(pronounced Soon) in April of 2017. If you know about Tron, then you no doubt have heard about Justin. Almost everyone has seen his resume but for the few who haven’t; Justin obtained his Masters Degree at the University of Pennsylvania, a private Ivy League research University. He was a student and protege under Alibaba founder Jack Ma at Hupan University. Justin is the Founder and CEO of Callme (Peiwoo) app and was a former Chief Representative and Adviser for Ripple.

Tron’s team boasts a who’s who of developers, marketers and advisers, most notably known in Asia. This is where a lot of debate usually comes in between American holders and critics. Because Tron is an international company with a team that doesn’t have recognizable names, it causes a riff as to how strong the team really is. On the advisory side, I have a ton of confidence in Justin’s ability to network with key people that can help bring on multiple partnerships with companies that will inevitably help Tron’s volume grow. On the developer side, based on posted resumes, Lucien Chen(CTO) and Keelson Yang(Technical Director) show to have a ton of experience in development. The rest of the posted development team have a little less experience, but do seem to be growing in numbers ever week. Which was one of the announcements Justin made recently, saying that they will have over 100 employees added in Quarter 1 which is a huge task in itself but does show how committed he is at making Tron a successful and long term endeavor.

The Development:

It’s important to know and understand Tron’s road map. From the start, the immediate expectations from most people were way too high. Tron has the longest road map of any coin I have seen. With each timeline giving us a new project that they hope to roll out on the Tron platform. And while I do believe a 10 year time line is a great goal to shoot for, I think the technology, competition and world around it will change too fast for an entire 10 year road map to be fulfilled by a single company.

tronroad

We are currently in “Exodus,” the very first part of the Tron schedule, which is set to run from August 2017 to December 2018. Open source started December 29th, 2017, with Mainnet scheduled to be launched March 31st, 2018. Mainnet will take Tron off of the ERC-20 token and onto it’s own platform known as TRON-20. This is where Tron will really begin to build value as a coin. As of now, it can only be used as currency, and with limited active partnerships where $TRX is actually used (Peiwoo app) this keeps skeptics talking and confidence in new investors down which ultimately effects coin prices. Launch of mainnet will be able to prove Tron’s real value as more than just a currency coin, causing overall price sustainability.

With the launch of mainnet, quite a few things will happen for Tron, the community and it’s holders. We will get an announcement about doing the conversion of ERC-20 to TRON-20. This usually involves having your $TRX on an exchange so that the exchange can swap your current ERC-20 Tron tokens into a TRON-20 coin, thus eliminating it from the Ethereum ERC-20 platform. (Keep this in mind when looking to store your $TRX in Ether wallets, once converted it is no longer an Ethereum token.) At this point, Tron will be able to do for other coins what Ethereum did for Tron. Coins can now be built on a TRON-20 standard, which immediately begins to add a real value to Tron, rather than just speculative or as a currency. Now it becomes a platform for other coins. Tron has stated that TRON-20 will be able to do 1000 transactions per second(tps) with Proof of Stake(PoS) algorithm. To understand more about how Tron would gain value as it’s own platform, I recommend this video by Ivan on Tech, as he explains the Value of Ethereum.(Tron becoming it’s own platform coin would be similar to how Ethereum gets it’s value.)

 

Pricing:

As of this post, Tron $TRX sits at #15 on the Coin Market Cap at 537 sats, with a USD value of $0.04. It’s Total Supply sits at $100,000,000(100 Billion) with a circulating supply of $65,748,192,476(65 Billion).

troncmc

Justin has promised holders that he would keep Tron’s supply of $TRX locked up until 2020, stating he has, “Confidence in Tron and have devoted our lives to it.” At one point Tron reached a CMC high of #6 position, with coin prices reaching all time highs, but soon prices started to drop causing FUD that the project was a scam and the coin was not going to deliver. I think this was the biggest issue to date for Tron. For a coin that had just started in August, to reach prices that high without a working product, there was no way that value was going to hold.

Tron’s price inflation was a perfect storm that caught a lot new investors by surprise. Tron was introduced to Binance, the most popular online exchange at a cost of sub 100 sats. In December of 2017 as cryptocurrency saw a major influx of new investors, a coin with a USD value of $0.01 was incredibly tempting to people. Add on the social media presence of Tron and Justin Sun, it caused inexperienced buyers to go all in on a coin that they really did not know a lot about. As the price started to soar, the fear of missing out(FOMO) kicked in and helped rocket the price to an ATH. People who invested low and knew the coins RSI(Relative Strength Index) was way overbought, started to sell off, which started to bring the price back down, then in turn caused panic sells and leaving a lot of Tron holders with a portfolio of coins that were bought way over value. This caused negative sentiment for both supporters and skeptics of Tron. A lot of the blame went to Justin for pumping the coin via Twitter or selling off Tron’s $TRX(Which was proved false via etherscan.io), along with any other rumor you could think of. The honest answer is that Tron never should have went much higher than what it’s current price is. At the time it had no real partnerships, no working development, only a handful of team members and advisers and at the point of it’s parabolic run up Tron was essentially just a vision, and those that new knew capitalized by selling off profits while others who didn’t were stuck with a bitter taste in their mouth of an investment they would have to sell for a loss or hold for a much later day.

Now we have finally started to reach more stable prices. Even during Bitcoin’s major dips these past few weeks, Tron, for the most part, has held strong to what I believe is it’s real value. A slow organic rise is what the coin needs to sustain growth towards higher prices. During the panic sells we saw Whales buying up Tron for huge discounted rates and witnessed them manipulating the price, so slow steady growth is the safest way to play without getting caught up in another major price increase that doesn’t have a reason behind it.

My Concerns:

Here you go, Tron skeptics, the part you have been waiting on. I do have a few concerns and I wouldn’t be doing my due diligence if I didn’t write about them. I live in the real world and do have an investment in Tron and while I have a ton of confidence in the coin and the company, I want to ensure my investment is protected. Here are the concerns I have and hope will be addressed.

#1. Coinburn. I think there is a misunderstanding of the Tron coin burn and I hope this is fully addressed by Justin soon as I wouldn’t want more FUD to happen due to the lack of communication about it. I think most people(myself at one point too) believed that by March 31st, Tron was going to do a coin burn similar to what Binance did with $BNB coin and billions of coins would be burned. What I think is going to happen, per Justin’s live chat on Periscope, is a coin burn similar to Ripple, where a percentage of coin is burned with each transaction. I think this is being written into the mainnet code and will be how coins are burned on the TRON-20 standard. This burn would cause a slower, long term reduction in supply, instead of a stroke of a button burn-off of a large chunk at once. This isn’t necessarily a bad problem, but it’s not what people are expecting, and that could be an issue.

#2. White Paper. This caused MAJOR FUD when it was reported that the Tron English version White Paper was plagiarized using parts from IPFS and Filecoin without referencing them. Justin immediately went to Twitter saying the English version was done by a community volunteer and the white paper was pulled from their site. It has yet to be corrected and added back and while I have 100% faith in the development team, for the sake of me investing in Tron coin, I would like to read a legit English version white paper.

#3. This will not be a long term issue, but it is more of a warning to Tron holders and buyers. Mainnet is set for beta release on March 31st, 2018. The full roll out of the mainnet is scheduled by July 1st 2018 or sooner. This means everyone will be holding their breath and waiting to see what happens by March 31st. Anyone that was a Verge $XVG holder remembers spending all of New Years Eve glued to their phones waiting for confirmation of Wraith Protocol being released. And when 12:01am (of literally every time zone) rolled in and no Wraith Protocol was released, panic ensued and sells started to happen. Tron can have every intention of testing the beta mainnet by the date they have committed to and releasing full launch of mainnet any time after, but if you know anything about coding and development, things happen and sometimes deadlines are not met. Plus the March date is essentially a test mode, so we may not know about anything other than a Tweet that it is “Going good.” There is no guarantees that when the Beta launch happens, anything changes (In fact, I would say its safe to say this will not be the case.) So I have concerns that the mainnet could be held up all the way until July 1st and everyone will panic that Tron is a scam and we’ll see the market react and FUD will be crazy, so this is your heads up in case that happens. It’s not out of the ordinary for these things to happen, prepare yourself just in case and just know that the full launch of Tron mainnet could very likely be in July.

Final Thoughts:

The journey of a Tron holder has been quite the adventure. There is no other coin that has given people so many highs, so many lows and so much in between. The vision Justin Sun has for Tron is remarkable; it is one that consists of essentially reinventing the internet, Internet 4.0 as he puts it. I believe that Tron’s relationship with the Chinese government and businesses there will be able to add huge increases of volume by users, rather than investors. I think many people are confused about China’s cryptocurrency ban(that will be an entirely different blog, I could write another 2000 words on that) and assume that Tron will not be able to do any business there. Which is why it’s good to see Tron being recognized by China’s National High-tech Enterprise and the partnerships with Chinese companies continuing to blossom as I believe we will be seeing a lot of growth in cryptocurrency between Tron and the Chinese citizens.

Although critics have had their fair share of ammunition as to why this coin will not succeed and people are wasting their money, I have witnessed Justin continue to improve upon the company. My initial frustrations of the lack of communication from the development team was easily laid to rest tonight as we got our first live stream from the team. Rooms full of Tron employees working hard at building the product Justin promised us, with actual interaction from team members and visuals of the development they are working on was a huge boost of confidence on my end. As Tron looks to continue to build their team, coin pricing finally finding stability that supports it’s real value, integration of $TRX into an actual working app, and of course, Justin’s favorite, more partnerships being added, holder confidence should be at an all time high. We still have many hurdles to jump and as I voiced in my concerns, we must be ready for those issues to rear it’s ugly head, but overall we are starting to see Tron’s strength build and I believe by end of 2018, Tron holders and supporters will be rewarded for their patience and ability to see the vision that originally gave us the reason to invest.

If you are interested in learning more about Tron, I recommend checking out some of their resources below.

TRON-Logo
Website
reddit2
Reddit
Screenshot_20180121-223121
Twitter
Screenshot_20180121-222647
Telegram

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Brad2PointO View All →

Crypto Enthusiast

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