TRON (TRX) has gradually declined in value by 51% over the last seven days. During that period, its price sunk from $0.226 to where it is now: $0.110.
Losing half its value seems like just a slight pullback when you put things in perspective, however. TRX has gained more than 1,100% in the past month.
It is a new coin, after all. It only launched in September. Its price trajectory was modestly positive before absolutely skyrocketing in the first week of January. But since it peaked around $0.26 last Friday, the downward slope has been merciless.
Just a few days ago, this cryptocurrency was enjoying spectacular weekly growth. So, what happened?
When It Comes to TRON (TRX), What’s the Draw?
This is yet another cryptocurrency whose foundational technology is similar to Ethereum’s. But TRON has a bit more of a focus than ETH does – the entertainment sector. Specifically, it’s a decentralized content distribution platform. The whole idea is to revolutionize how we consume entertainment, by infusing it with blockchain technology.
It’s a way to connect content creators directly to consumers. The whole point is to bypass big, corporate (and centralized) content marketplaces – like the App Store or Google Play. It’s all about putting the power back into the hands of consumer and artists. This vision has certainly resonated with a lot of investors. People have been rushing to buy TRX in the past couple months – until last week.
Why Is TRON (TRX) Starting to Reverse its Massive Gains?
Well, a pretty sizeable scandal has hit this cryptocurrency. Earlier this week, news broke that the TRON whitepaper may have some portions plagiarized from other blockchain companies’ whitepapers. Specifically, accusations were made that Justin Sun, the TRX founder, copied from IPFS or Filecoin’s whitepapers.
The issue was raised on social media, thanks to the founder of Joystream, who tweeted this:
— Bedeho (@bedehomender) January 7, 2018
That tweet sent shockwaves through the cryptocurrency markets. Suddenly this rising star altcoin was hit with a plagiarism scandal. It’s value started to plummet. Sun, however, has objected to the claims:
Our original version of the whitepaper is in Chinese and we have a very detailed reference to the latest Chinese version. The English, Korea, Japanese and Spanish versions are translated by the volunteers. The translation missed numerous important details not just reference.
— Justin Sun (@justinsuntron) January 8, 2018
A crypto site called Trustnodes pointed out, however, that there are identical BitSwap equations in part of the Chinese version too. People have jumped on both sides – either complaining or supporting Mr. Sun.
With some of its underlying development copied from other protocols, what do you think of TRON now?
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.