A new report from Bloomberg is pointing out the increase in the price of Tron’s native cryptocurrency TRX, which has almost doubled in value in just one month.
Bloomberg compared Tron to other crypto startups that surged in value before crashing when the market bubble popped.
The Bloomberg report states that Tron is similar because it has a young entrepreneur, a lot of hype, and question marks surrounding the use of its main product.
So Where Does It Start?
Tronix token or TRX began as an ERC20 token on the Ethereum blockchain in 2017 and soon moved on to create its own public blockchain. Last year, it migrated to the mainnet TRX token and had since become one of the largest coins in the market (by market capitalization). The founder of the blockchain project is the 28-year-old Justin Sun who previously founded Peiwo- a Chinese social networking app that works like Snapchat.
Tron’s whitepaper has been blamed of plagiarism as it borrows several concepts and computer code from its initial host platform Ethereum. It has also been found to include parts of whitepapers from other startups in its own.
Tron supports decentralized applications and TRC10/20 tokens, creating an Ethereum-like environment but with a higher throughput and more scalability options. Last year, Sun bought file sharing service BitTorrent for a whopping $120 million and will be launching the BTT token for the platform soon.
It All Looks Rosy until It Doesn’t
Messari Inc.’s CEO Ryan Selkis suggests that Tron was written off as a project with no substance but a lot of hype.
“But they made a lot of noise with the BitTorrent acquisition, and now I think it’s an open question of whether they will be one of crypto’s most high profile ‘fake it till you make it’ success stories,” he said.
Tron has been hogging the limelight with its extravagant marketing efforts, especially since their nITRON conference, starting today in San Francisco, will host former NBA star Kobe Bryant as a keynote speaker. Sun will also be speaking at the conference alongside an executive from the $25 billion telecom company Swisscom AG.
Sun isn’t shy about Tron’s efforts either, saying that he wants to see Tron become the most famous brand across the globe. Tron is currently working on turning BitTorrent’s 100 million monthly users into crypto adopters. It is also focusing on increasing the number of decentralized apps on the network.
Whether the price of the coin is justified in the face of these efforts is yet to be seen.