The TRON (TRX) project is running on a brand-new testnet, which is going through an intermediate stage before the election of Super Representatives. Justin Sun, the project’s CEO and founder, tweeted:
https://twitter.com/justinsuntron/status/1002403387810275330
But after all the hype, the immediate comments on TRON reflected the skepticism about the project. The use case of TRX tokens is still counter-intuitive, and TRX is mostly rising or falling on speculative trading. Adding the effect of BTC prices on the formation of the TRX price, and it may take years before the project’s qualities are reflected into the token’s price.
TRX also has an extremely high supply, potentially putting it above Ethereum in market capitalization, if prices reach $1. But this event may take years and widespread adoption. TRON is also centered around the Chinese market, giving the project a specific risk exposure. In theory, international projects could be built on top of the TRON platform.
The TRON project has the habit of setting milestones almost every month, and the next one would be the Super Representatives elections on June 26. Even John McAfee has tweeted support for one of the teams applying for the elections.
https://twitter.com/justinsuntron/status/1002112279939239936
But the biggest expectation for TRON would be partnerships with Chinese giants, with Alibaba (NYSE:BABA) creating the biggest hype and expectations.
The market price of TRX showed weakness even ahead of the mainnet launch. The day of the launch saw TRX slide by about 3% to $0.059. Trading volumes slid to $268 million, and TRX went one step lower, to the 10th position based on market capitalization. In the coming weeks, more transfers of TRX tokens are expected to land on exchanges for the token swap.
!TRON!
Still, TRX has managed to double in price in the last quarter, on relatively thin volumes. But the news of the mainnet launch were anticlimactic, setting off a slide in prices that looks set to continue for a while.
This article appeared first on Cryptovest
