TRON (TRX) is a hype cryptocurrency, which carried out one of the most ambitious and profitable ICOs in 2017-2018. However, users severely criticized the Tron cryptocurrency several times. But the cryptocurrency still has admirers who defend its reputation. Let’s have a look at rumors about Tron and find out if there is any reason to believe them.
Look Under the Hood
The project is a decentralized platform for entertainment content. Put simply, the Tron platform is similar to Google Play, but users will use the TRX cryptocurrency. Creators of digital applications, video, and other content will use TRONs, fully owning them, controlling and distributing. Mostly cryptocurrency will function in applications that require the use of coins — for example, online casinos or betting sites.
In addition to digital money, the platform TRON offers the user to create their money or programs. Developers will theoretically be able to control access to their content while avoiding commissions that platforms like App Store, Google Play, or Amazon take.
TRON or TRX is a coin that is used to exchange inside a digital system. The benefit for users is that TRX can be easily exchanged for local currency via bitcoin exchanges, making it an ideal tool for international traders. Miners have no opportunity to mine cryptocurrency because during its launch all coins were issued. In general, their number is 100 billion coins, but almost a third of them are stored on the TRON company’s wallet.
Moreover, platform development has a clear plan for ten years ahead. The main goal of developers is to create a fully independent and decentralized space. Each user will have access to the content in it, convert tokens or work together on the development of one or another project.
Scandals Around TRON
In late 2017 and early 2018, it was said that Chinese e-commerce giant Alibaba and TRON were about to start a partnership. It caused even greater interest in this cryptocurrency, but over time, users noticed that the company did not make any official statement about the partnership. The general director of TRON, Justin Sun, announced that the cryptocurrency would cooperate with Baofeng, an analog of a digital TV channel in China. It was said that it would add more than 200 million new users from this enterprise. Information about this appeared on the company’s Twitter.
Bloggers and coin owners noticed again that the announcement on Twitter was mistaken since the partnership was actually with the new blockchain division in Baofeng, and not with the company itself. The branch is called BCN (Blockchain Consensus Network), and the main company has 200 million users, while BCN has very few of them. Such mistaken information caused demand for the cryptocurrency among uninformed consumers, while more experienced investors began to criticize it.
Worse, TRON was already at the center of the scandal at the same time. Many programmers and those who have already acquired the coins of TRON noticed elements of plagiarism in a white paper of the platform. Apparently, in one of the English-language versions of the documentation, there were many similarities with the Filecoin altcoin. Justin Sun said on Twitter that it was not plagiarism, but a wrong translation of the document into another language. The reaction from the public was immediate – a new wave of scandals and critics followed the Tron cryptocurrency.
Besides, the creator had to officially deny rumors that he cashed his 6 billion TRX coins (which is a third of the cryptocurrency that the company had in reserve). People believed that even developers were not confident in the success of the company, so they decided to quickly sell their currency and make money at a high cost.
Despite the hate wave and the rumors mentioned above, TRON still has a lot of advantages:
- TRON aims at the development of the market of entertainment content, which has very high prospects in the future. It covers several areas at once and includes a video hosting, social network, streaming platform, gaming portal, online casino, payment platform, and online edition.
- The main idea of TRON is to create a decentralized entertainment platform on which users could create and monetize content without intermediaries.
- The currency is created by a strong team of developers. Some TRON developers have experience in large well-known companies, including those related to cryptocurrency. The development of TRON involved Ripple Labs specialists.
- TRON can support a large number of running applications. At the moment, the network is capable of processing 2000 transactions per second.
- The TRON platform is often accused of being too centralized. About 50% of the TRX tokens on the market are stored in ten addresses. Consequently, the owners of these addresses can influence the price of this cryptocurrency. The fact that none of the users is aware of who owns these tokens rocks the boat.
- Only 15% of the issued coins are available for private investment. A limited number of developers and large investors owns the rest. No matter how the opposite is stated, there is always the temptation to move the TRON cryptocurrency rate in the right direction.
- At the moment, only the first part of the TRON project roadmap has been implemented, which involves launching its blockchain. The remaining plans that should turn the TRON blockchain into a decentralized Internet are written down several years in advance. That is why, despite the presence of its own network, the platform is still at the initial stage of development.
If you still doubt on getting TRON, then at present, there are several projects on the digital assets market that deserve attention and no one can stop you from researching more about different currencies.
Still, TRON is considered to be a good and widespread coin. TRON’s capitalization today is 1.47 billion dollars. Though, the dynamism of the cryptocurrency market is changing all the time. And it may switch the balance of power of the leading players on the market. Even more, other significant and challenging projects can be created. So, keep in touch!