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Why is TRON falling (Is TRON worth investing)?

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Why is TRON falling? What exactly is TRON? We all know that Bitcoin is highly vo

Why is TRON falling (Is TRON worth investing)?

Why is TRON falling? What exactly is TRON? We all know that Bitcoin is highly volatile. Since 2014, it has been in a state of oscillation. 2015 marked the beginning of a bull market, but the downturn in 2018 made investors hesitant. The rise of TRON in 2019 brought about new opportunities in the field of digital currency: stablecoins and decentralized applications (DeFi) quickly gained popularity.

With the growing demand for stablecoins, more and more projects are choosing to invest in decentralized blockchain networks. This not only leads to a significant drop in cryptocurrency prices, but also brings more regulatory risks. As a result, many criminals have started taking advantage of this opportunity to cause trouble. However, TRON, a Bitcoin-based network, has been overlooked or excluded by many people. So what is the “shanzhai” on TRON? Wave Networking is one of the most popular and promising applications, providing more efficient and convenient services, and becoming the foundation of the mainstream financial industry. However, TRON, as a decentralized protocol with leading public chain technology and a powerful ecosystem, has its core features, including discounted transaction fees and high throughput.

However, at the same time, due to the high Ethereum gas fees, the entire industry has become extremely congested, causing competitors to delist or shut down, thus affecting the direction of the industry’s development. In addition, TRON founder Sun Yuchen has stated, “TRON Foundation has no reason not to launch new tokens for developers.”

Although the value of these projects has been greatly recognized, no positive news has been seen after TRON’s official statement. According to The Wall Street Journal, “US SEC Chairman Jay Clayton recently told Congress that a California court needs to approve a new bill draft aimed at protecting users from ransomware attacks,” he added. “I think this is a very meaningful issue because it is a legal issue. If a team is willing to accept such recommendations, it means they may face some lawsuits.”

Regarding TRON, TRON’s anonymous issuer TRX released the first product TRX-JST on August 22. In addition, Tron is the first blockchain platform that supports TRC20-USDT trading pairs. Tron is the world’s second-largest payment system composed of smart contracts, with the most validator nodes, capable of running more than 1 billion smart contract applications and processing 50,000 transactions per second. The total value locked (TVL) of the product has reached nearly $12 billion. Tron is a highly secure blockchain dedicated to building the core infrastructure of the future internet. Since 2020, the progress of TRON’s ecological construction has been rapid.

According to the latest news, the current price of TRON-based USDT is $0.006, with a 24-hour price increase of 16.3%. As of the time of writing, TRX is trading at $0.037.

Is TRON worth investing?

In a recent article, I briefly discussed the current situation of TRON.

We know that the current market value of TRON has reached $1 trillion, but the issuer of its token has rarely disclosed information publicly. This means that investors are not as crazy and irrational as they imagined when investing in it. They even regard TRON as part of this category. So if we consider it as a digital currency, we cannot say that this project is “air.” Instead, we need to see if the company behind it is reliable and can continue to operate. What will happen if projects represented by TRON successfully go public? The answer is obviously:

1. There is no company or entity providing funds to support the products and services on TRON.

2. All products on TRON’s platform are not verified and do not have the support of recognized third-party service providers. These are custodial services provided by centralized exchanges.

3. Each application in TRON’s ecosystem will be rewarded through token incentives (also known as “mining subsidies”), and this reward is similar to traditional equity financing, except that it establishes certain rules or restrictions to give back to the interests of community participants.

4. “Tipping” refers to the means of users freely paying TRX, BTT, JST, and other tokens to others as a commission. Under normal circumstances, people will receive airdrops during the transaction process. However, because they did not receive such airdrops or fees, many users cannot exchange them for corresponding TRX or BTT, etc.

Technically speaking, the TRON team has strong coding capabilities and can solve many problems in the blockchain industry, such as low security. Moreover, TRON itself has powerful technical advantages, and it is difficult for it to be hacked even in the event of a security incident.

In conclusion, various activities on the TRON network may become gambling for ordinary users. This is also one of the reasons why many people think TRON is a scam. Once a celebrity questions whether TRON is a Ponzi scheme, it will cause losses. It is like someone using their own money to buy Bitcoin and gamble. However, having said that, everyone still needs to pay attention to the risks and not blindly buy TRON coins to speculate on shanzhai coins unless they truly realize they are scammers.

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