The crypto world is full of innovations and new projects. The recent crypto market crash has been very difficult for the entire crypto community. Many people leave their crypto positions and wait for the end of the downtrend. However, this accident was unlike any other. This post is all about Justin Sun and why you should invest in Tron. Let’s look at it in more detail.
What is TRON (TRX)?
Tron is a blockchain that strives to increase the speed of transactions. Tron promises to be able to process 2,000 transactions per second, compared to 6 and 25 transactions per second (TPS) for Bitcoin and Ethereum, respectively. It is a decentralized platform for the exchange of knowledge and entertainment. In 2018, Tron bought BitTorrent, a well-known file sharing service. This project established stablecoin algorithm which was marketed as a success.
But, after UST accident and Teatthey bad media, even stablecoins are fraudulent. Investors began to liquidate and withdraw their capital from the exchange, which then stopped the withdrawal. This took a serious toll on USDD, which started to lose its peg, thereby affecting the price of TRON.
The Tron blockchain is founded on the Delegated Proof of Stake (DPoS) consensus mechanism and has 27 delegates. Tron delegates are named Super Representatives. According to the Tronscan block explorer, 176 are available on demand. There are approximately 100 billion tokens, of which about 66.5 billion are in circulation. Like all cryptocurrencies DPoS, tokens used to elect delegates must be locked. Tron takes 3 days to unlock tokens, after which they are liquid and can be transported again.
How does TRON work?
TRON uses a three-layer architecture. These include the core layer, the storage layer, and the application layer:
- At core layer running a major foundational project for the blockchain. It contains validating transactions, handling accounts, and reading smart contracts.
- At storage layer created to manage complex data storage. It is divided into blockchain storage and condition storage.
- At application layer used by developers to create configured dApps and wallets. There is a wide spectrum of applications that can be created because TRON supports smart contracts.
The FOMO strategy
In the beginning, Tron sold itself as a new type of internet and entertainment system that was not limited to the whole world. Tron bought Bittorrent in the summer of 2018 and issued tokens in early 2019 (BitTorrent / BTT tokens) that can be used to pay for file transfer services. This has changed the self-portrait.
This project is best known for its extreme marketing. Justin Sun has a history of aggressive marketing to stay in the news. This often goes so far that false statements are made. For example, one fine day, Justin Sun announced Tron’s Twitter partnership with Liverpool football club. It turned out to be fake news.
USDD lost Peg to USD
Decentralized USD (USDD) is an algorithmic stablecoin on Tron. It is believed to maintain a one-to-one exchange rate with the US dollar. It relies on a complex, automatic balancing instrument that alternately builds and removes USDD and TRX units.
In June 2022, the Tron network stablecoin, USDD, lost its peg to USD. As a result, the price fell to 91 cents, as the crypto market declined as investors worried about persistently high inflation, deteriorating financial conditions, and the possibility of a recession.
Tron founder Justin Sun has tweeted if the level of allocation in the Binance exchange for betting or “shorting,” the local TRX token of the Tron blockchain is at -500%, a huge level that shows many investors who are crying to get into that trade. According to Sun, TronDAO “will deploy $2 billion to fight them.” TronDAO stated in a tweet which amounts to $650 million USDC in reserves.
Should you invest in TRON?
The most important problem with TRON is its founder, who has also been the CEO for many years. Justin Sun is somewhat controversial in the crypto community. In March 2022, The Verge posted a lengthy investigation report on Sun was founded on revealed internal TRON records and questions with more than 30 sources, including ex-employees. The report states that Sun then completed TRON’s ICO before China banned the offering, which he learned about the progress from the Binance creator. He also hired a “market making team” that will drive insider trading of cryptocurrencies, including TRON. Sun will tell this team to buy TRX when TRON is ready to announce the good news to the public. So, not only Tron but invest in any crypto after careful study.
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