Projects Like Tron are “Just Garbage,” Says Jed McCaleb; TRX Price Ticks Higher on New Year’s Day

A dismal trading session for Tron turned positive late Tuesday, as TRX nudged closer to the 2-cent mark following three consecutive days in negative territory. The tenth-largest cryptocurrency by market cap was in the headlines for all the wrong reasons on New Year’s Eve after early crypto pioneer Jed McCaleb said projects like Tron don’t stand a chance in the long run.

TRX/USD Update

The TRX price reached a session high of $0.1956 late Tuesday, snapping a three-day losing streak. The sudden burst higher followed a sharp intraday drop back down to the $0.1875 region. At the time of writing, TRX/USD was valued at $0.01932, having gained 2.1% on the day.

Tron has recovered 26% over the past month but has experienced a sharp drop in momentum in recent weeks. Price recently retreated to a known area of demand near $0.017 before breaking higher late last week. A sustained recovery north of $0.01915 is needed to keep the bullish momentum alive.

Tron technical analysis: Momentum Slows Despite Strong Fundamental Activity.

TRX saw daily trade volumes of $69.4 million on Tuesday, according to CoinMarketCap. Binance and Bit-Z were the biggest spot markets for TRX trades via TRX/BTC and TRX/USDT.

“Just Garbage”

Blockchain pioneer Jed McCaleb didn’t mince words when asked about the direction of the cryptocurrency market. In an interview with Yahoo! Finance on Monday, McCaleb called Tron and 90% of other blockchain projects “just garbage.”

McCaleb, the co-founder of Stellar Lumens, Ripple and the now defunct Mt Gox, believes the year-long pullback in cryptocurrency prices is ultimately a good thing.

“One of the nice things that comes with the market calming down—I still say it’s not a bear market—it means there’s less of that,” McCaleb said in reference to the ICO boom of 2017.

“Ninety percent of these projects are B.S. I’m looking forward to that changing. Things like Tron, it’s just garbage. But people dump tons of money into it, these things that just do not technically work.”

McCaleb isn’t the only industry leader to have criticized Tron. Read: Justin Sun Still Bullish Despite Buterin Critique; Tron Price Climbs 6%

Tron has received significant media attention over the past two years thanks to a combination of bold claims and strategic acquisitions by Justin Sun, the project’s founder. Sun, who boasts a 678,000-strong Twitter following, has routinely inflated his company’s partnerships. At the same time, he has put his money where his mouth is several times, including the acquisition of BitTorrent, a globally renowned peer-to-peer network.

Sun has received scathing criticism for allegedly plagiarizing portions of his company’s whitepaper and for routinely pumping his project on social media without much substance. Early last year, reports indicated that Sun may have cashed out billions of TRX tokens during the height of the bull market. He was recently called out for touting a partnership with Baidu that wasn’t really a partnership at all (his company merely purchased Baidu cloud services). Read more: Did Tron Mislead Investors by Claiming Partnership with Baidu? Experts Weigh in.

That being said, Tron has outpaced Ethereum in smart contract development and usage, a feat that would have seemed virtually impossible just one year ago.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi