Cryptocurrencies have risen so fast in the last one year that fears of a bubble are now rife, even among the most diehard fans of cryptos. One of the coins that seems to have benefited from this meteoric cryptocurrency rise is Tron (TRX).
What is Tron?
Tron (TRX) is a cryptocurrency that has aims to decentralize data storage, by allowing individuals to store their own data. It aims to wrestle control from companies such as Apple and Google that run the Apple store and Google store respectively. But is TRON strong enough to warrant a 12,000% rise in prices in one month?
Why has Tron risen by over 12,000%?
One of the reasons that have led to the rise of Tron to its current price levels is positive news. Right now, the crypto space is so hyped up that any coin that comes up with positive news is guaranteed to move up in price. Tron seems to be one such coin. For instance, its recent rise is attributable to the news release that it will be partnering with a listed company.
In the last few days, coin has seen a drastic drop in value. While this price drop can be attributed to the latest drop in all cryptocurrencies, there is a good chance that Tron has not lived up to its hype. For instance, after announcing that it will be partnering with a major listed company on January 6th, this never came to pass. Later along, the company announced a partnership with a little known Chinese social media company. This might have created the impression that company is nothing more than just an overhyped token that has little to offer in terms of value.
TRON (TRX) has also been hit with claims of plagiarism in its whitepaper. There are credible claims that the company’s whitepaper is copied word for word from the whitepapers of other cryptos such as that of Filecoin. Tron’s response to these claims is that the plagiarism appears in the English translation of its whitepaper, and that the Chinese version is unique.
Nevertheless, this response has not satisfied critiques who argue that even the Chinese version is plagiarized. This goes to show that there is something amiss with it, and that it might not be worth its salt, when compared to other cryptos out there.
To buy or not buy TRON (TRX)
Tron is a coin that is riding the crypto wave, through some very savvy marketing. Once a market correction happens, there is a good chance that it will be hard hit. It could be one of the coins that might not survive once the crypto bubble bursts.
Nevertheless, anything is possible in the crypto markets. If company announces some credible partnerships, its value could shoot up to unimaginable levels. For instance, the company that it has partnered with, Peiwo, is a fast-rising version of Snapchat. If the partnership works out well, TRX Coin could be headed to the moon, as it said for rising tokens in crypto circles.