Tron has had a spectacular rise to the top of the crypto world. It went from being an ICO with a value of roughly $100 million dollars to a top 10 cryptocurrency with a market cap of approximately $19 billion at it highest valuation. At the time that this peak occurred, Tron had just released its open source code on GitHub. To put it plainly, Tron was still a concept with no significant product to show for it. So what exactly transpired that has kept Tron in the top of the pack? Is it the tech that has been developed in the last 8 months? Possibly. Is it the amazing leadership, both managerial and technical? Maybe. But that is not everything.
The Building Blocks of Tron
Tron has many things going for it. Some of it is the result of hard work and smart decisions. And other things are based on less obvious factors such as timing and luck. Of course, the hard work aspect would include the dedicated effort by all the parties involved in leading Tron’s development. This includes the tenacity of Justin Sun and the Tron community in expanding the platform. Then there are the decisions that have helped shape the path for Tron. I remember all the FUD that came about because Tron had been accused of plagiarizing some whitepapers. Was that a decision or an oversight? I do not know. But I do know that spending resources and time of creating a perfect english translated whitepaper would have been a waste. After all, Tron now has a much broader vision than just the entertainment industry.
As with most cryptocurrencies, the technologies behind them share many similarities. Not to mention, most of the coding is open source which means the code can easily be copied. So what does this mean? It means that establishing a big following is critical in cementing yourself as one of the top dogs in the field. And Tron knew this. That is why Justin Sun was relentless in his marketing tactics early on. Did he succeed? You bet he did! He knew timing was of the essence.
Tron: Right Place at the Right time
In all the mayhem that was taking the crypto world by storm late last year, was an opportunity of a lifetime. Not just for the crypto speculators, but also for the projects that had a vision and a plan. Yes, some projects turned out to be money grabs while others are still limping along pretending to have value. Others may have had a vision but simply did not seize the moment. No Carpe Diem on their part. I raise my hand on that one too.
Can we say that Tron, along with other new projects late last year, got really lucky that they existed prior to the moonshot? I can say without any doubt that luck was on their side. As with everything in life, you need talent but you also need lady luck to accompany you. Lady luck was holding Tron by the hand. Now, is it luck that got Tron to crypto stardom? Definitely not. A lot of hard work has been put in by everyone to make Tron succeed. But on the other hand, imagine if Tron was an ICO in February of this year. It would not be where it is today and would probably have a market cap below its ICO price as with most other cryptos from this era. How is WanChain doing? Matrix AI? TheKey? Boy, am I glad Tron didn’t waste time on translating their whitepaper!
— T. @WLFOFMYST (@WLFOFMYST) April 25, 2018
Tron’s Cash Cow
Before I go any further, I will warn you. My theory is based on assumptions and lots and lots of research. I have been following Tron since November of last year. I used to follow wallet activity for the top 100 wallets to see if anything stood out of the ordinary. Well, there was always that one wallet that had the odd activity. It was the one that was constantly selling ever since the beginning of the year. It was buying for a brief period last year coinciding with some TRX rallies. But then, when TRX started its charge for 30 cents, It became a seller and continued to sell on a daily basis. And this was no chump change wallet. This wallet had over 8 billion TRX at the beginning of the year.
Is this a Binance wallet, a Bittrex wallet, or a liquidity wallet? It was definitely not a Binance nor a Bittrex wallet. We all knew which wallets those were. Some called this wallet a liquidity wallet. A wallet that was there to meet the demand of the market. If a lot of buyers step in, to overpower the market, the liquidity wallet would step in to meet some of the demand. Think of it like a shock absorber. The same applies in reverse. So why would a wallet sell nonstop while the price went from 30 cents down to 2.5 cents?
Some will not like my answer, but it is what it is. It was to fund the project. Could I be wrong? Of course. That is my opinion and I stick by it until proven otherwise.
”So why would a wallet sell nonstop while the price went from 30 cents down to 2.5 cents?The Common Sense Man
The 8 Billion TRX Powerhouse
So what exactly does 8 billion TRX get you? Well, lets do the math. Let’s assume that the average sale price was 7 cents(it was probably higher). That would equate to $560 million dollars. And that is not taking into account ICO funding or any other type of behind the scenes funding. Do you really think Bittorrent could have been purchased by any random blockchain project? $140 million dollars is quite a price tag. Not many blockchain projects have market caps higher than 140 million. As of this writing, only 55 projects on CoinmarketCap have higher valuations.
It is no surprise that Tron keeps expanding at the rate it is. The Tron Foundation keeps hiring top talent and opening new offices around the world. None of this can be accomplished without money. Based on my theory, Tron was able to put its plan into overdrive by capitalizing on a market gone crazy. Those projects that took advantage of their situation back then now have the resources they need to accomplish whatever they want to accomplish.
King of the Crypto Hill
Can a newcomer dethrone one of the top cryptos in the world? Sure they can. But the difficulty of this task if rising exponentially by the minute.
Tron knew what it had to do. Tron had to get on the world stage as quickly as possible just in time for the crypto explosion. At which point, they capitalized on their unique position and monetized every single ounce of it. As a result, they now have the cash to carry out their plan at a much faster rate and possibly with better execution than originally planned, unlike the other projects who are starving for cash. Tron, thanks to its savvy leadership, has positioned itself in such a way that makes it extremely difficult to challenge. This is one of the reasons why I do not take much time in researching any new projects. They will more than likely fall victims at the hands of powerhouses such as Tron.
|This article was written by the Tron Spark team. Tron Spark is a digital content platform currently serving as a Tron Super Representative. We believe that with the help of the Tron community, we can inform and educate the masses on the exciting evolution of the Tron Protocol. Join the Tron Spark team and lets get the message across!|