TRON (TRX) fans have possibly the most unfaltering blind loyalty to their favorite cryptocurrency – loyalty that has stuck around, even after the management team behind this coin misled them a number of times. Since the last time we wrote about this digital currency, it has jumped from being the 14th most valuable coin on the market to being the 11th most valuable. That means its market cap is less than $100 million from surpassing that of IOTA (MIOTA), which would put it in 10th place.
But, despite the fact that this cryptocurrency has climbed the charts, its price is about 1 cent less than it was back then – so other coins have just been doing worse by comparison.
Today, however, this is the only coin in the top 70 most valuable crypto coins to be in the green today (excluding Tether, of course).
What is the reason for that?
Why are TRON (TRX) buyers so optimistic?
There is a very clear reason that this coin is making some (slight) gains today: the testnet version of its entire platform is about two days away. The founder of TRON (TRX) tweeted this out yesterday:
This test-version network will come before the actual, live platform is introduced. That date is scheduled for May 31st – after it was pushed forward from the original launch date of July 1st.
Now, I know that this just means that developers can play around with the technology, and that this isn’t anything close to a full-blown product launch – but there are good things that can come out of a testnet launch.
The TRON (TRX) testnet could boost this coin’s price further upward
So, decentralized applications (dApps) can’t be launched on this platform yet – but that doesn’t mean the testnet can’t spark some positive momentum for this project (and, therefore, this digital currency’s price tag).
But when developers, investors and potential business partners get to see the power behind the technology (if it’s impressive), that could get the ball rolling on some price-boosting events – like new business relationship announcements or projects that announce they are moving their dApp from one network over to the TRON (TRX) ecosystem.
We really have to wait to find out, and it will take more than a day for the market to digest this testnet launch.
It also might not be that big of a deal
A situation that is much more likely would be that this whole testnet launch will be underwhelming. The price of TRON (TRX) could very well be in the red 72 hours from now. Why, you ask?
Well, remember how this coin’s whitepaper was totally plagiarized without giving credit to the other projects it ripped off of? Yeah, that’s a big reason why this technology won’t be earth-shattering.
On top of that, this coin’s team has a tendency to over-hype stuff on Twitter – and just handle PR-related things terribly.
Plus, the whole point of TRON (TRX) is to make the internet decentralized, but it’s also a decentralized entertainment platform – how is that different than what most top-ranked crypto projects are about?
What crypto projects are out there that aren’t allowing for dApp development with more scalability and efficiency than the Ethereum network? Most of them are – and most of those ones didn’t cheat on their whitepaper.
What do you guys think?
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.