If you have been in the game at any length of time, there are three things that you must have heard of: Tron, TRX, and of course the man himself. Justin Sin.. er I mean Sun.
Yeah, I have beef with the man because of his business decisions. BUT, he did manage to create something really good with the Tron Ecosystem?
Let me rephrase that because honestly, I feel a little dirty. His company/foundation, Tron made a really interesting product, and despite the way, I feel about Sun, I think Tron (TRX) is good crypto.
Well, Thank you SO much for reading, I really appreciate it… I’m kidding. No, there’s more to the story and I’m gonna tell you in my own patented fashion.
Just as a side note, you should remember that as I am writing this, I have a neckbeard and live with my mom.
Should you REALLY take anything I say seriously? This ain’t some financial advice and you really shouldn’t take that kind of life-altering protips from a guy like me —or should you?
I’ll tell you some good stuff, but my name isn’t Edward Jones or J.P. Morgan.
With that outta the way…
What is Tron (TRX)?
Tron is a blockchain. Its token, Tronix, or TRX is the currency that runs on the Tron Blockchain.
There’s a bit of confusion in the west when we are talking about this because of a particular movie that came out in the 80s that included a really cool guy named Jeff Bridges.
I’m frankly surprised Disney hasn’t tried any legal action on TRON.
Oh wait, they actually prevented TRON from getting some trademarks on the names in the United States. Alright, never mind that little diversion.
In any case, TRON is a blockchain that operates using a protocol known as the Delegated Proof of Stake (DPoS).
In their situation, they use DPoS like this —there are folks known as super representatives (SR) and they are responsible for processing the transactions and maintaining the blockchain.
As a result, they get rewarded in TRX for their troubles. But here’s the catch; in order to become a super representative, you need to get people to basically “vote” for you.
For every TRX a person has in their wallet, that entitles them to exactly one vote. You can take your votes and apply them to the current super reps or the candidates that are trying to gain a super representative position.
It’s a pretty competitive space; only the top 27 organizations that have the most votes get the Hallowed Title of SR.
You apply your votes to an SR, and they (hopefully) provide you with a sweet piece of their crypto reward pie. Most of them give anywhere from 75% to 100% of their Rep Rewards to their voters.
The more votes you have, the bigger piece of the pie you get. Cool, isn’t it?
Use Cases and Problems With The Tron Blockchain
As for the Blockchain, they have two major goals: Provide a decentralized network for Decentralized Apps (called ‘Dapps’) and to create a blockchain that can run faster than bitcoin in terms of transactions per second (TPS).
Currently, Tron can run about 2000 TPS, which leaves Bitcoin in the dust at about 3 TPS. That my friends; is what the Italians call a “spicy meatball”.
Naturally, a little bit of disclosure is in order. First, you should know that there are allegations of “whitepaper plagiarism”, specifically from an organization called Digital Asset Research and Ethereum.
The latter is not surprising; TRX started out as an ethereum token until they migrated to their own blockchain.
Furthermore, there’s a big evidence of collusion between Justin Sun and Binance, specifically their CEO ChangPeng Zhao (or CZ for short).
This is most evident when you look at who the top SR is for the Tron Blockchain —BINANCE.
They own well over 13 BILLION tokens, which is several billion more than the number two position.
While in theory, this isn’t necessarily wrong, there is the worry that Binance used customer assets to achieve this dominance in the SR system. And they have been called out on it.
This is interesting because it REALLY makes us think twice about what it means for something to be “decentralized”.
Sure, cryptocurrency probably has the distributed ledger tech in the bag, but what of the assets?
Well, typically (like most currencies) 20 percent of the people who are involved with it tend to own approximately 80 percent of the assets.
This is known in economics circles as the Pareto Principle. In other words, the tech makes things decentralized, but wealth often never is.
There is always a “ruling class” with these sorts of things. That’s a problem especially if the major feature of your organization is decentralization.
The technology simply isn’t enough. Having said all this…
Is TRX A Good Investment?
The simple answer is yes and the long answer is “maybe”.
Well, I tend to think so, but then I will warn you that I myself am a HODLer of the Tron (TRX) coin and other TRC tokens.
Now here’s the long answer. In terms of market capitalization, TRX is worth over a billion USD. This places the TRX coin in the top 20 cryptocurrencies according to data on CoinMarketCap and it’s nothing to dismiss easily.
While the retention of Dapps on the Tron blockchain is questionably short, there still are really good inflows and outflows for the currency, and at this point (whether you like it or not) they are essentially a crypto household name, right up there with Ethereum and Bitcoin.
Ethereum developers will like the ease of working with Tron, as their code for smart contracts is also written in Solidity, though with a few modifications.
Final Thought on Tron (TRX)
I think the major destabilization factor for the Tron (TRX) cryptocurrency is the management.
Justin Sun is a Robber Baron the likes of which hasn’t been seen since the Gilded Age.
He wants to acquire projects, conglomerate them under his Tron brand, and wash, rinse, repeat.
This caused serious problems, one of which a lot of folks probably know about; the acquisition of Steemit and the attempted takeover of the Steem blockchain.
This acquisition shows that while you can buy a company or project, you cannot buy a community.
Lots of shady stuff happened, and these events spurred the creation of Hive Blog, a hard fork from Steemit.
Some might suggest that Justin is a world-renowned personality; he rubs shoulders with some really important folks and partners with some really great projects.
Do not let this fool you; the partnerships and dinners with Billionaires are window dressing.
The only method of proving the success of a product is to show the product working. Period. End of Story.
You can definitely make some money with Tron (TRX) if you’re into staking and playing around with some of its tokens, I wholeheartedly believe this.
Just be careful. Keep that in mind when you do your research, and never falter in your due diligence. Only invest that which you can afford to lose, and you will be glorious.
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Thanks a LOT for reading today, I really appreciate it.
Until next time, keep your eyes on the market and when you hear from Sun next time, take what he says with a grain of salt.