TRON (TRX) is counting down to its testnet launch, creating new hopes of another price spike as the project expands and enters its more active stage. In the past month, TRX has hovered sideways between 3 and 4 cents, and almost flat against BTC. This relative price stability may start to invite buyers betting on the longer-term future of TRX.
After the December pumps took TRX to above $0.14, the project acquired instant publicity by virtue of the speculative madness. But afterwards, the drop in price was sharp and sobering. The recent recovery still looks rather precarious by comparison, happening on still extremely low volumes.
Investors ascribe the recent price recovery to social media noise. And while this may help with the price recovery, history shows that hype is creating high volatility for TRX. The price and interest in TRX may continue to benefit from the testnet countdown, as curiosity returns to the project. At the moment, prices under $0.04 are considered relatively low and a buying opportunity.
The TRON test net launch is a serious step ahead of migrating the token to the main net in the summer. For now, TRX is an ERC-20 token, but the asset migration may revive the interest. Additionally, the launch of a test net would invite more developers to the open source platform.
But from this moment on, TRON may have a hard time establishing itself. The open source platform will have to deal with the lack of transparency, as well as the challenge of communicating with a global community, while the project's initial partners are concentrated in China.
RT Tronfoundation "Ever since #TRON established its open-source project, a lot of developers started to pay attention to it and submit codes, we have 21 contributors and we will send out #TRX $TRX to them as reward! Refer to the link to check the list. … pic.twitter.com/lSAFF1ooco"
— TRX News - 波场 (@TRX_News) March 20, 2018
Attracting developer talent remains one of the chief challenges for TRON. In the short term, the token migration may also create troubles, as the asset will have to reapply for inclusion in hardware wallets.
Some users store their TRX on Binance, which sees the most active trading, and will wait for the exchange to complete the token migration when the main net launches. Buying and owning TRX at this point will have to take into account that technical challenge in the coming months.
This article appeared first on Cryptovest
