Tron Flashes Rare Green Despite Warning About BitTorrent Token
Tron’s TRX token flashed green on Monday, outperforming its major cryptocurrency peers thanks to a technical rebound that first emerged roughly 12 hours ago. The ninth-largest cryptocurrency by market capitalization appears to be recovering from a turbulent weekend stoked by speculation that the Tron network won’t be able to manage BitTorrent’s voluminous transactions, something it purports to do via the newly created BTT token.
TRX Outshines Market
The TRX token climbed above $0.02500 in overnight trading, its highest since Friday. At the time of writing, TRX/USD was valued at $0.0238, having gained 4.8% on the day. By comparison, the overall cryptocurrency market was down 3.1% over the 24-hour cycle. The majors were down between 2% and 6%.
It’s not uncommon for Tron to go against the grain of the overall market. It was the last major cryptocurrency to fall last week following bitcoin’s sharp and sudden drop. This precipitated a much bigger selloff, which dragged crypto prices to their lowest in over three weeks. More on this story: Crypto Markets Extend Slide as Volume Plummets; Bitcoin Approaches $3,500.
Tron’s trading volume more than doubled on Monday, reaching $375 million. Volumes declined sharply over the weekend as overall market activity cooled. Binance is the largest market for TRX trades; on Monday it processed more than a fifth of total transactions. https://hacked.com/crypto-markets-extend-slide-as-volume-plummets-bitcoin-approaches-3500/
Tron’s native token has been on a rollercoaster as of late. Markets initially rallied behind the launch of the BitTorrent Token (BTT), a cryptocurrency designed to incentivize participation on the massive peer-to-peer file sharing system. The TRX price would eventually reach five-month highs before falling victim to a broad market pullback, which was driven by the aforementioned slump in bitcoin’s price. Losses seemingly mounted over the weekend after a former BitTorrent executive cast doubts about whether the Tron network can actually support BTT transactions.
Simon Morris, who previously served as BitTorrent’s Chief Strategy Officer, said there was “no way” Tron’s network can handle the file-sharing system’s transaction volumes.
“I suspect that what they’re really going to do is they’ll do it on some central server, they’ll wave their hands and say, ‘Oh, it’s a Lightning Network for TRON,’ or something, and pretend it’s TRON-based, but it’s not really TRON-based,” Morris said in an interview with BREAKER magazine.
Morris also slammed Tron’s founder Justin Sun as being all marketing and no substance.
“It’s very clear that Justin is very strong at marketing. He has a very nice personality from a marketing point of view. He doesn’t have a technical bone in his body,” he said, according to CCN.
Sun’s company acquired BitTorrent last summer for $126 million. The acquisition was seen as a major breakthrough for the Tron Foundation and its founder, who has faced criticism for over-hyping projects and rarely delivering on promises.
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.
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