2017 was the year when over 700 new cryptocurrencies were launched. Tron, under the TRX ticker, was one of them. At that time, the design of this token was quite extraordinary, which helped it gain popularity.
Basically, the Tron network didn’t bring any significant innovation to the crypto industry, in general. It was the reason why the project received a lot of critical comments at the very beginning.
However, as time was passing by, many admitted that Tron was quite successful and efficient in implementing smart contracts, dApps, and other blockchain-based features. Because of this, more users started focusing more on functional capabilities, rather than on the exploration of brand-new solutions.
Unlike many other popular blockchain-based projects, Tron wasn’t afraid of revealing its founder’s name – Justin Sun. This step helped the project to make the community around it more loyal and supportive since users found it easier to work within the ecosystem that wasn’t created by an anonymous team.
The principles of the TRX concept explained
Today, the TRX token is operated in its native ecosystem. However, initially, it was launched on the Ethereum network.
The Tronix network follows the main idea of the blockchain-based projects – it’s completely decentralized from central authorities. Users who are willing to create different types of digital content can enter the ecosystem and receive certain amounts of TRX tokens for being productive within the network.
The Tron network offers one more lucrative feature, which is the possibility to develop new tokens. Their creators can later apply these coins in their decentralized applications as a form of reward.
One of the most popular types of dApps developed on the Tron network is decentralized games. The platform entitled the players with the possibility to provide their rewards to game creators.
This blockchain is based on the proof-of-stake model. According to the rules of this mechanism, the transactions are validated by special representatives, who are also responsible for recording the transaction history. In total, there are 27 representatives. Every representative will receive a certain amount of TRX coins as a reward for validation for 6 hours.
Key Events Impacting Tron (TRX) Price
- On the first of January in 2018, the founder of the platform, Justin Sun, introduced the Pet Planet game launched on the Tron network. The title was launched in collaboration with Game.com. The playing interested many users right after the announcement. Additionally, 2 days after the launch of the Pet Planet game, tweeted about a possible partnership with a respectable public company. These two events increased the hype around the Tron (TRX) token and helped its price surge by 522% in just 4 days. The price increased from $0.044 to $0.19.
- In late April 2021, the algorithmic USDD stablecoin was launched on the Tron network. The demand for it started growing very fast, which also contributed to the Tron (TRX) price growth. As a result, TRX grew by more than 30% in May 2021, while all the other cryptocurrencies, including Bitcoin and Ether, crashed. Some of the projects lost 40%! The TRX price grew from $0.1 to $0.14.
- The period between August and September 2021 was the time when the crypto market started recovering from the spring-summer crash. TRX recovered as well. From July to September, its price grew from $0.057 to $0.11. As of June 23, it’s traded at $0.062.
Trade Tron (TRX) with DotBig
The best way to become a holder of TRX tokens is to buy some via the DotBig.com platform. This online forex broker offers complete security of your private account and charges no additional payments for the possibility to enter the crypto trading market.
DotBig.com offers the most advanced tools to help you benefit from trading TRX coins and other crypto assets. It has almost 100%-accurate trading signals and displays more than 50 technical indicators.
The DotBig forex broker offers the best support services. Whatever avenue of trading you choose (stock, currency pairs, commodities, cryptos, CFDs), you might be sure that you will be able to count on professional support from experienced financial analysts.
Pros of Investing in Tron (TRX)
- The Tron network is constantly improving its performance in different areas of the DeFi industry. As of today, the total number of Tron accounts exceeds 90 million.
- Any beginning investor can afford to buy TRX tokens. The coin has a very low price ($0.062 as of June 23), which allows any investor to buy a big amount of tokens and spend not many funds.
- The number of registered accounts on the Tron network is increasing due to the very efficient performance of the platform. It provides very fast execution of transactions with low fees.
- The total value of Tron is increasing.
- Tron has signed partnerships with Samsung, CoinPayments, Opera Web Browser, and other mainstream brands. This is great in terms of efficient promotion and adding legitimacy to the project’s reputation.
- Decentralized applications, developed on Tron, quickly become popular with users. Actually, they drive the prices of the cryptocurrencies applied.
- Tron has the largest circulation of stablecoins.
Cons of Investing in Tron (TRX)
- Tron has to go through the competition against the market giants such as Ethereum, Cardano, Polkadot, and other projects that have bigger digits of market capitalization and operate bigger budgets.
- Tron cannot get to the top of the list of platforms by developers’ activity.
All in all, investing money in TRX tokens is a good idea. There are more advantages than disadvantages. The high speed of transactions and low fees allow many users to enter the participation without serious risks. Besides, TRX is now the 14th cryptocurrency in the rating of the best digital assets by market capitalization.