The cryptocurrency of the Chinese entertainment content platform, TRON (TRX), entered the market on September 13, 2017. By the beginning of 2018, its price suddenly increased several times, and the new coin joined the list of top 15 cryptocurrencies by market capitalization. Nowadays TRON occupies the 14th position (more than $4.4 billion), and almost 420,000 people invested in the project.
About the project
The developers are planning to launch a decentralized global platform of digital entertainment content—TRON—this year. It is a blockchain-based decentralized protocol that aims to construct a free worldwide content entertainment system with blockchain and distributed storage technology. The protocol allows each user to freely publish, store, sell, and distribute various types of digital content: graphics, animation, video and audio content, applications, and video games.
Smart contracts will be available for users as well. They will help them create and distribute new content and produce their own tokens. Thus, the developers are going to create a unique decentralized ecosystem of entertainment content, which will become a competitor for Google Play and Apple Store.
Participants and partners
The project is headed by the graduate of the University of Pennsylvania, Justin Sun, who is called the "next Jack Ma" (founder and executive chairman of the Alibaba Group). Sun joined the 30 Under 30 list, according to Forbes Asia 2017. Justin Sun represented the Ripple cryptocurrency in the past year. He is also the founder of Peiwo APP—Chinese Snapchat. The list of partners includes:
Peiwo APP is a mobile application founded by Justin Sun and developed by Beijing Peiwo Technology. According to the TRON official website, the application has more than 10 million users and will be the first application compatible with the new entertainment platform. In addition to mobile options, the TRON wallet will be available on Peiwo this year.
The TRON Foundation is based in Singapore and will carry out technical support and monitor the operation of the TRON network. The September ICO collected $70 million, with 35% being transmitted to the TRON Foundation. It will provide support to developers too.
Baofeng Group is the audio and video content platform, a Chinese Netflix, which became a new TRON partner on January 10. Baofeng has more than 200 million users, has operated in the Chinese market since 2007, and today is one of the largest in their industry. Baofeng will be responsible for audio infrastructure and support the development of blockchain-based TRON.
In less than six months, TRON has drawn the attention and interest of many major players in the Chinese market. The project is supported by:
Tang Binsen – founder of Clash of Kings, a mobile game.
Dai Wei – founder and CEO at OFO, a bike-sharing platform.
Chaoyang Wang – founder of China Equity Group.
Yin Mingshan – founder of Lifan Group.
Linke Yang – founder of BTCC.com.
Xue Manzi – famous Chinese entrepreneur and angel investor.
Despite the widespread support in China, TRON is criticized a lot among the international crypto community. First of all, experts believe that the project does not have any viable product and today it can provide just a technical document—white paper. The TRON's English whitepaper appeared to have been plagiarized from the whitepapers of FileCoin and IPFS. On January 7, Bedeho Mender, founder of JoyStream, tweeted:
Moreover, founder of Protocol Labs, Juan Benet, undertook an analysis of the TRON's English whitepaper and posted evidence on Twitter, which says that nine pages of the English version were copied:
This problem became even more widely publicized, when Litecoin founder, Charlie Lee, retweeted the message. Later, Justin Sun explained that the TRON's Chinese white paper includes all the references and the problem lies in the translation that lacks many things, not just references to previous projects. Nevertheless, all versions of the white paper, except for the Chinese one, were removed shortly afterward.
What is more, crypto community accuses Sun of fraud: a Reddit author pointed out that more than 6 billion TRX ($300 million) had been sent to one of the wallets. According to the post, Justin Sun was the one who owned the wallet. Moreover, it was bound to the CryptoKitties game, where the user was registered under the nickname "justinpets."
Businessman denied these accusations and said that the deal had been concluded by some market-maker "who used the account to trade and increase the ability of closing positions, rather than selling tokens." Also, he added that he would never use his name for registration because it is unprofessional. And the story should have ended, except for one thing. On January 5, Justin Sun posted a 34-minute video, where he was showing his profile on the Chinese CryptoKitties. But on the video, it could be seen that he was registered under the nickname "justinsun."
After this came out on January 6, the TRX price—which suddenly reached a $14 billion market cap at the beginning of 2017—has begun to fall dramatically and now stands by 30% less from its recent value.
TRON provides two tokens based on Ethereum: Tronix (TRX) and Tron Power (TP). TRX was launched in September last year to attract investment in the project through the ICO, whereas TP would be used in the future to reward TRON users for certain actions. TRX and TP cannot be mined.
Today the TRX price is $0.06 (0.00000508 BTC or 0.00005446 ETH). Initially, TRX was traded on Binance, but now the coin is also traded on Liqui, Bit-Z, HitBTC, Gatecoin, OKEx, gate.io, EtherDelta, YoBit, and Mercatox.
One of the most popular and convenient online wallets that support TRX is MyEtherWallet. Also, it can be stored on the Parity wallet or hardware wallets such as Ledger and Trezor.