BMJ Score: 4.1
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Is Tron a good investment? This article provides a summary of the token and what its future may hold.
Tron's primary goal is to provide free content for entertainment. You could describe it as a combined decentralized version of Netflix, YouTube, and an app store.
Tron has a clear, focused value story, targeting customers who want to make content such as films and images available for sale. However, it is also part of a new market and is subject to a large degree of regulation.
Economics Behind Tron
There are a lot of new players in this market, but there is not a distinct rival; the Tron platform is the first of its kind. However, this is also troublesome as there is not an existing entertainment platform currently.
While Tron has plenty of innovative ideas, it is anyone's game at this point. Until Tron has an actual platform to host free content, it is going to be a struggle for the altcoin to take the map of market share.
The value Tron is claiming to create is built around circumventing censorship and centralization. The aim is to allow people to connect socially in countries where a government may not allow such interaction, such as was the case for the Facebook ban in China.
Advantages Of Tron
Tron is currently using ERC20 tokens but will convert them to recreate their own blockchain. While this sounds great in theory, it remains to be seen whether this will actually work.
Tron boasts a very strong network, including partnerships with MLG Blockchain and Gifto. The latter is used to send virtual gifts to social media contributors and is currently part of a $1.8 trillion industry.
In a smart move, Tron has created its own pet game called tron.game.com. There is a lot of speculation that this will do well as 2018 is the year of the dog in China, and Tron has a positive relationship with the Chinese government.
When looking at lead time, Tron is leading with a detailed roadmap of its 10-year plan. While a very ambitious project, it is very much in the content development phase, which will not be complete until 2027.
Tron has a very strong management team. Justin Sun is the main CEO, and he has worked with Ripple in the past. Sun also founded the social media platform Peiwo, which has 10 million users.
The only question around Tron's integrity is the issue of copying their whitepaper from Filecoin. This doesn't bode too well in terms of honesty. However, Tron is now claiming that there is a new release of the whitepaper and founders acknowledged that the Filecoin incident was a mistake.
Tron has three tokens, and each has value and utility. TRX is available for purchase and trade and is required in order to use the Tron platform to buy and sell content.
There is also a Tron Power token which serves as a type of vault where users can lock up their TRX and receive Tron power in return. This is then used for voting rights on the Tron network.
The third token allows users to create their own tokens and issue them.
The Tron platform is currently being used to create, buy, and hold tokens. Therefore, it is hard to gauge the value of its token in a meaningful way, as it is not fully developed.
Tron's token supply is fixed at one billion, and it has a very high market cap. However, if a competing altcoin were to take this idea and implement it sooner with a functioning product, it would be easy to take a lot of that market share away from Tron.
The Bottom Line
Tron has a lot of interesting partnerships and is part of an exciting industry with a lot of participants. However, as mentioned, Tron is currently in a big development phase and will not be fully complete until 2027.
So, while the altcoin is promising, it is hard to see how Tron will play out long term. The Gifto network is large and that partnership might be the one to spur the mass adoption into rewarding content. Will it be successful? Only time will tell.
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Bitcoin Market Journal analyst briefing for Tron.
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