It’s been the subject of much debate and controversy in recent weeks, having leaped from just a fraction of a penny to over 31 cents before crashing back down to between 3 and 5 cents – but is it now Tron’s time to shine?
Many investors who jumped on board the currency between 20 and 30 cents are clinging on tightly to the idea that the cryptocurrency will reaccumulate value, in what is certainly a testing time for those who put faith in the possibility of a TRX bull-run.
Boom and bust
Grey Blockchain Concept Split up in Grid
While detractors point at Tron’s huge spike and fall over the course of a matter of days, other crypto commentators with faith in the currency rightly point out that most of the biggest currencies on the market followed this path in their formative months.
Known as the “J curve”, this occurs when expectation for the value of a currency is greater than the actual real-world valuation. The initial spike happens because of interest and expectation, without the implementation or development of any technology. Hype is high, but usefulness is low.
This results in a quick drop-off as the initial investors get cold feet. Over time, the J curve continues a slow but steady incline as the technological applications of the currency are revealed, along with any partnerships or collaborations with industry leaders or financial institutions.
Dominating the social media crypto market
The best way to understand Tron is to consider it as the social media Ethereum of China. The technology is being implemented in Gifto – one of the world’s largest social media gifting platforms with over 20 million users. Gifto is already set up to work with the world’s biggest social players like Facebook, Instagram and Pinterest.
As increasing numbers of users gift currency to social media content creators with the platform, this raises the profile of Tron (TRX), whose technology is used to facilitate the transactions.
With other social platforms, such as Obike – Asia’s biggest bike-sharing app – adopting Tron’s technology, it’s easy to see how TRX will become one of the largest social media crypto’s on the market.
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