3 Reasons Why Tron (TRX) is About to Takeoff Again

3 Reasons Why Tron (TRX) is About to Takeoff Again

3 Reasons Why Tron (TRX) is About to Takeoff Again

Tron (TRX)–Tron has been the focal point of some serious negative press coverage, most of which is being driven by the sudden dip in price. While the entire market is down 300 billion USD since last week, TRX has suffered over a 50% decrease in price after reaching an all-time high in value to start the year. 

Here are some reasons to get excited for Tron despite the recent dip in price:

Opportunity for Exponential Gains

Again, the entire market is down. You can’t look at Tron in a vacuum without considering the impact of a market downturn. Bitcoin plunging from 15000 USD to near 10k levels is largely responsible for the price dip across the market, as almost all coins are valued in BTC. The per-satoshi value of TRX has had a less severe dropoff than its comparative fiat value, and will find a floor more quickly. As BTC loses value, investors have less incentive to sell bags of TRX at a cost of two, three or even four hundred satoshis when the price of Tron has more room to grow after the market correction.

If Bitcoin sinks to 8000 USD before making another run at its all time high of ~20000 USD, we are looking at 150% increase in value. If the same were to happen to TRX (trading at 0.05 USD, as of writing, versus an ATH of 0.30 USD), that equates to a 500% increase in price. Savvy investors will come to realize that while Tron is posting one of the worst losses of any coin in the Top 20 market cap, it also has the greatest potential for a bounce back. Yes, past performance does not predict future results. But unless we see a total collapse of the Tron project, with Justin Sun and his team selling out (or abandoning it all together), it’s almost unfathomable that Tron will not hit 0.10 USD at some point this year, averaging at least a 100% return on investment (possibly more if the market continues to dip). Remember: these guys are still commanding a 3.5 billion dollar project, even after the downturn. Even though market cap is not the greatest indicator of value, imagine how exciting it is to be apart of a project, still in its infancy, that has managed a billion dollar valuation. Point being: Tron may be down, but not out.

Baofeng Partnership

Lost in all the FUD and hostility towards TRON was the announcement of a major partnership with Baofeng, a popular Chinese video player company that allows users to stream content. The Baofeng deal, hinted for weeks on founder Justin Sun’s twitter account, was presented as a “Chinese Netflix,” when in reality TRX will be working with a division separate from the streaming service.

Herein lies the duality of Justin Sun’s personal marketing campaign: while a master at drumming up hype and excitement for TRX, he also creates the conditions for untenable expectations. So while the Baofeng partnership is a step in the right direction, in particular for future adoption, it was lost in the backlash by a predominant Western investor-base that was looking for a deal with more substance. It sounds great to hear “the Netflix of China,” but with all the crypto watch-dogs and naysayers waiting to find fault, Sun should have known his claim would come across as duplicitous.

That being said, Baofeng represents adoption and an expanding sphere of influence. Cryptocurrency is in dire need of real-world use cases. Like XRP being given a pilot program with MoneyGram, TRX and Baofeng may be the foot-in-the-door needed to spawn more partnerships. Think about the internet. It didn’t start as a ubiquitous technology. Few could have predicted in the 1990s that within two decades people would be doing everything from shopping to dating and conducting a large amount of business online. If cryptocurrency is to have a future in technology, finance and social engagement, it’s going to take time. More so, it’s going to have to spread like a virus, first infecting a small market to gain exposure before working its way to a more predominant position. We may look back on Baofeng as the only legitimate partnership TRX was able to develop before going under. Or, a year from now, Baofeng may have been the tip of the iceberg to kick off a thriving project.

Strong Social Media Presence

Tron has a strong social media presence, helmed by Justin Sun’s personal Twitter account:

Twitter: 194k followers, Reddit: 51K, Medium: 2.4k, Discord: 4700, Github: 243 commits

Add to that the fact that Tron is barely a four month old company, and you have the conditions for a project that is building a strong presence and ready to break out. The surge to 0.30 USD was a premature move by the market, but nonetheless, a recognition for what TRX is trying to achieve. With a strong development team, charismatic and tireless founder in Justin Sun and early, real-world partnerships, Tron is a severely undervalued currency on paper. Cryptocurrency is built upon the principle of decentralization, which necessitates an open-source approach and shuns a singular, overbearing leader. But let’s look at what the market has gravitated towards:

Bitcoin: extreme fascination over the identity of Satoshi Nakamoto, and an almost deifying tone in his absence.

Bitcoin Cash: heavy-handed, acerbic leadership of Roger Ver, who is willing to tank the entire market to see the success of BCH

Litecoin: devout belief in Charlie Lee and the painful backlash of his selloff.

Investors want a single source for positive news and advocacy for the currencies they put their money into. Cryptocurrency is so new, we, as an investment market, have yet to adjust to the absence of CEOs, centralized press releases and point-source updates on projects. Justin Sun is a Steve Jobs of the crypto world. He knows how to work the crowd. He knows how to tease excitement, disseminate interest and build a devoted following. That will either have the effect of paying massive dividends for TRX over the course of the coming year, or cause enough mistrust to give Tron the appearance of a toxic project. But keep in mind: we live in a social media age. Veteran investors may not be impressed in the outlandish claims of Sun, but a younger, more wide-eyed audience may be willing to give him a chance. Crypto is a risk at this point. Sun’s claims may become the butt of many crypto-related memes a year from now, or they might herald the market force of Tron. Either way, the exposure benefits TRX. There will always be investors looking to speculate on the next big thing. The open communication Sun has about TRX development and partnerships keeps Tron in the public spotlight, for better or worse, and avoids the all-too-common phenomenon for exciting crypto projects to fade into obscurity.

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