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A warning to newcomers: Be sceptical of TRON and don’t just buy because the price increased in the last few weeks!

I recently noticed that TRON moves upwards in marketcap. I have to say that I am biased, because I always stayed away from this project, especially because of his prominent leader “Justin Sun”.

However the price surge made me curious and I gave it a shot and looked if there was something which could explain the new pump.

After looking into their subreddit and searching the internet, I did not find a good reason (development progress, real world adoption), why TRON should be gaining in value.

The only reason that I found, which was also mentioned in one post on their subreddit, is that a lot of TRON tokens are burned, decreasing the supply. Of course this leads to an increase in value.

To all the newcomers who search for the next rocket launch, this isnt it. Of course do your own research, but IMO this project only survives because of hype. The newest attempt is to increase the value, to probably get even more people on the hook. And I do think the price will increase short term, but someday people will realize that this project is all hype and marketing to say the least.

In the end, it doesnt matter if you have a scarce token when it cannot do much.

​

Source #1: [https://np.reddit.com/r/Tronix/comments/mkc98a/what_is_the_reason_for_the_surge/](https://www.reddit.com/r/Tronix/comments/mkc98a/what_is_the_reason_for_the_surge/)

Source #2: [https://twitter.com/justinsuntron/status/1360528262271705088](https://twitter.com/justinsuntron/status/1360528262271705088)

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Edit: Since this got a lot of heat which was to be expected, I firstly want to say that I am still sceptical about TRX. But as I mentioned, and people who commented, everybody should do his/her own research. To the comments which say “Tron is great, its a fast network with low fees” I just want to say, that “high speed” in a rather centralized system is nothing to be really proud of. There are projects working on systems with “high speed”, which however dont sacrifice dezentralization. And othe projects with decentralization suffering from scaling problems working do better scale.

Source #3: [https://finance.yahoo.com/news/tron-co-founder-cto-leaves-105200597.html](https://finance.yahoo.com/news/tron-co-founder-cto-leaves-105200597.html)



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27 Comments

  1. Long time TRX holder, bought at 18cents during crash, averaged down to 0.03 cents over 3 years. Watched as every other coin pumped and trx didn’t. Realized this coin was extremely undervalued because of FUDDers and bought a ton more.

    Like others have said, you haven’t done a lot of research and probably just listen to tiktokers on what to buy next.

    Justin Sun, although he has had his drama, always delivers consistently throughout the development of the tron network. Stuff gets done.

    Reasons for pump:

    1. BTT or bittorent competing in the decentralized file storage section with filecoin. BTT goes up and trx will also go up as you need BTT for fees and such.

    2. WIN OR Wink which has been a casino platform on tron for a long time has also migrated to Binance in the form of Blink. This gives daily dividends from casino wins in trx/bnb and so on.

    3. BRG or bridge being the oracle of the tron network.

    4. NFTs becoming a thing on Fandao and other platforms.

    5. TRX can be both inflationary and deflationary. Network usage is up which has cause TRX to become deflationary meaning more people are using it.

    5. Tron has a large amount of stable coin on the network for institutions and your average joe.

    6. Defi century mining available so you can get TRX, BTT, WIN ,JUST and SUN. All of these serve a purpose and more are farther along the way like BTT and WIN.

    7. Unconfirmed but bigger institutions like JD and Ant group investment might have been investing in the platform. This is here say but if you check on Tronscan some of the big Super representatives are ANT and JD.

    8. TRX is rated top 3 for China cryptocurrency list. Once the digital yuan is ready then china will start issuing exchange licenses. TRX is a big contender for this. Imagine a huge influx of chinese investors. Right now the pump is based only on other countries. Anyways, this is great positioning.

    9. Although meme marketing with Lindsay Lohan’s NFT, beeple 68 million bids and so on , it does bring new people into the crypto space wondering what the hell is going on. Justin Sun makes big noise not only for Tron ecosystem for crypto in general.

    10. As previously said TRX did not pump with other coins. It is now pumping. Late bloomer.

    11. Lightning fast and 0 fees as long as you have energy.

    The list could keep going but I hope some people read this and join the official tron network telegram and start asking questions.

  2. I don’t have any money in, but wouldn’t the price increase just be down to having smart contracts that are picking up? And doesn’t that just lead to blind hate from ETH fanboys who are stupid enough to believe that ETH should be the only network that should be allowed to do this, even while paying ridiculous fees? They are bringing value to the space at the moment and it does seem to be in a decent state right now, with plenty of room for improvement. Pity the creator is sus.

  3. Let me tell you why tron is better than 99% of the other cryptocurrencies out there.

    Firstly, tron has a LOT of users. There isn’t much ‘hype’ as you say, because if there was, no other crypto would match up to tron. The main thing about tron blockchain is that it is undervalued. Yes, the developer documentations and opportunities on tron right now aren’t great, but that is only because most people build on blockchains like ethereum.

    Tron gives you a number of free transactions. They don’t have a specific number, but TRX and TRC-10 tokens take something known as bandwidth. You’re given 5000 bandwidth, replenishing over 24 hours. This allows you to transfer values as low as 1 sun (10^-6 trx) without any transaction fees whatsoever. Just like ethereum, TRC20 tokens, however are based on smart contracts. Even this can be made free by freezing. Freezing TRX allows you to gain resources, either bandwidth or energy currently. You can get energy, and triggering smart contracts for anything will take energy and bandwidth. So if you have enough trx, you can freeze, or buy energy for free or cheaper transactions. Plus with the low value of tron, this amount is almost non existent. A normal transfer on eth or btc can cost a few dollars, or even more.

    Tron supports smart contracts, like ethereum. Tron is faster (approximate block verification time is 1.5 mins according to my experience) which makes the transactions almost instant. This speed and low transaction fees cannot be seen in most crypto currencies. And the one’s who do have this, they don’t have smart contracts.

    As for the future growth, tron has just launched the TRC721 (NFT) token, just like ERC721 (NFT). Apart from this, you mentioned that ” it doesnt matter if you have a scarce token when it cannot do much.”, but many exchanges have started taking tron natively. And with the price increase, it is very possible that it might catch the eye of more of these exchanges and payment gateways.

    ​

    I completely disagree that the price increase is because of ‘hype’ in the community, but because tron is starting to gain the recognition it truly deserves

    Here is a list of other achievements:

    – Decentralized storage #BTFS https://BitTorrent.com/btfs

    – Decentralized live stream https://Dlive.org and https://Dlive.tv

    – Faster downloads using torrents https://Bittorrent.com/speed

    – Smart Contracts compatible with EVM

    – 19 Billion in stablecoin #USDT

    – Decentralized stablecoin #USDJ just.tronscan.org

    – DEX like https://JustSwap.org with wrapped tokens as BTC, ETH, LTC, USDT and more coming

    – Lending platforms https://Justlend.org

    – TRONtv on development

    – Partnership with Samsung, you can use DApps and TRON tokens in the native app of Samsung

    – Partnership with Huawei to integrate BitTorrent applications in their phones

    – Partnership with Opera Browser

    – Oracles https://JustLink.io

    – Privacy features Zk-SNARKs https://zkWrapper.io

    – 2000 TPS, free transactions

    – DApps, Blockchain games

    – Non Fungible Tokens NFT https://developers.tron.network/docs/trc-721

    – Side Chains and unlimited scalability https://tron.network/sunnetwork

    Comming for 2021

    roadmap and discussions:

    – ParaChains https://github.com/tronprotocol/tips/issues/243

    – CrossChain https://github.com/tronprotocol/tips/issues/246

    – TRON Hybrid consensus:https://github.com/tronprotocol/tips/issues/247

    – SPV on TRON:https://github.com/tronprotocol/tips/issues/248

    – Block header synchronization: https://github.com/tronprotocol/tips/issues/251

    – Cross-Chain connection: https://github.com/tronprotocol/tips/issues/252

  4. I always tell people to check the Social medias of a coin before buying it, Take a look at TRON sub and you will see a perfect example of a moonboys community:

    These are the Top posts at tron sub right now:

    * Tron just hit 0.13
    * It’s time for more exchanges
    * where the tron haters gone?
    * 14c baby
    * 13 cents
    * always hodl
    * What is the reason of the surge?
    * What does tron coin do? : “just want to understand its fundamental because i Yoloed all i had :D”

  5. Pfft. This sub has always been biased against TRX because your main reason is how shady Justin Sun is. Tron network is working blockchain with established products. Y’all hating it coz it’s a threat to Ethereum. Enjoy that ridiculous gas fees while newcomers in crypto revel in secure, fast and zero to cheap transaction.

  6. Maybe part of the reason for the TRX surge is because BTT has surged. Not every blockchain has legitimate, interesting projects in it. And here Tron has a project that people have a better understanding on its use case.

    I hate how people here have projects that they have clear biases to, and they are completely unwilling to accept anything positive out of it.

  7. What a trash opinion. This person is trying to “educate” newbies, admits they have a strong bias already (so can’t give impartial, unemotional advice), and then doesn’t even do their own research properly. If they had they’d have found out that the token burning news was an April fools.
    This smacks of someone who has been in crypto a few months, read a few articles, and now thinks they’re an expert, but just regurgitates the general opinion of other subs, which is “grr, tron bad! No buy!”. This is just a guy who has a big holding of ETH, is jealous of another project doing well and scared at the same time. Just look at all the responses in this sub and you’ll see how stupid and wrong OP is.

  8. I don’t understand why many of these projects are going up suddenly. I’ve was reading an article stating that EOS largest project was switching to Ethereum, looked up the price on CMC and it was a double digit increase.

    Realism has nothing to do with price these days.

  9. The deflationary side of tron is not the right reason because the supply burned on a day is not enough to increase the value especially since the burn is not regular. Most people think that there are about 70 billion TRX in circulation (according to CMC). In fact the foundation has 30 billion in reserve for a total of 100 billion (pre-mined) and today the global supply is well over 100 billion with the creation of new TRX since the establishment of the mainnet and SR arrival. Even with the evidence of burns of 3mio / day, if it was every day it would take years to pummel the price of 1%. I posted another sub showing the TRX trend since 2017 against bitcoin, it has never been bullish. So beware 😉

  10. This one always perplexes me.

    I like TRX. Tokens on their blockchain are fast as fuck and the transactions are dirt cheap.

    Yea I get it….Justin Sun blah blah blah. But what crypto is perfect?

  11. The reason its rising is binance and huobi are running a trading competition. Itll end on the 16th (Note: I did read this on Binance announcements but now can not find the dates, so take this date with a pinch of salt as it might be just the award date), once its done someone gets money and a car or something.

    This has nothing to do with mr punchable face.

    Edit: Im leaving the above post as is because whatever happens happens, however I was up until now sure that there was an announcement that did state something running until the 16th where a car was being given away or something to that effect. Now I never made a note of the url nor copied the information because I wasnt taking part, never would, so discounted it and moved on.
    I look now and I cannot find any information about it, so I cannot confirm if I actually read it or not. So ignore my post, downvote if you must I accept that, but as the internet is want to do when it wants to remind you youre wrong it does it in bulk.
    Although the price hike might have been true for an actual competition that took place, after.. well I think its best I dont comment :).

  12. this sub is a joke sometimes, the extreme irrational bias against coins is absurd.
    trx isn’t some ‘pump and dump coin’ it has actual development going on, just read the other comments on this thread. I really couldn’t care about the rumors of justin sun, he is at least though actively promotes his product online.
    enjoy those $80 gas fees on eth at the moment to do anything, as opposed to cents on trx to do the same transactions.

  13. SO the nearly 20 billion of USDT on the TRX chain being swapped around (burning more TRX) … is not a reason…

    So the passing of Proposal 51, which causes a deflationary supply reduction in the coins supply curve…. is not the reason….

    Overly Centralized POS network? Do you even understand proof of stake? Its highly centralized to THE STAKEHOLDERS. Justin is also removing his super reps… and Seeing as there have been at least three new Super Reps to have come on the scene from major investment firms… but no that’s not the reason either…

    The authors post’s opening line is “I am biased because I hate Justin” -> after that you should just stop reading the rest, because its nothing more than FUD from one more person who didn’t believe in the project and is now salty that they were wrong.

    If you do not like “centralization” then you are going to HATE ADA, ETH 2.0, XRP, XLM, and just about every single other pre-mined coin or token, AND every single POS network… The Argument over “centralized or not” is broken because it doesnt matter if the network is centralized: so long as the power rests in the hands of the stakeholders.

    Did Justin and the Tron foundation hold a lot if not majority of coins? At one point yes, but hat is no different than XRP or XLM or any number of other pre-mined network… Now that those coins are being held by network users, and actively STAKED in the POS economy surrounding TRX, that has changed (and the passing of Proposal 51 was a good sign of this).

    Should people be cautious of the fast rally? Absolutely, markets do not head in straight lines, but it doesnt mean TRX is a bad investment in the long run. The price of the coin is certainly in question right now- that is what markets do- they DISCOVER PRICE. There will be a dip, and I will personally be buying more when and if it does.

    If you believe in it, hold it, stake it, earn your yield like I have.

    ​

    Last remark: TRX is by far the most SHORTED coin out there, and on high leverage… This is the definition of a short covering rally, and on the back of positive fundamental news is a major sign the coin has recovered from the brink of destruction, and should be taken seriously…

    ​

    Love the discussions and a the naysayers- its what makes a market

  14. i think everyone has fallen into the tron trap. i got there by mixing trx up with xtz and zrx

    ending up with 10€ in staking, thinking it’s a lot of xtz.

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