Throughout 2017, there were significant gains made by a number of digital currencies such as Bitcoin, Ethereum, and Litecoin. These market pumps have led investors on a hunt to find the next big coin to cash in on.
Massive Swings and Twitter Confusion
TRON has recently emerged as a prominent contender this year and has experienced a number of large swings at the turn of 2017 and into 2018. On January 1, 2018, the market capitalization for the digital currency TRON was just over $2.9 billion, and at one stage on January 6, 2018, this cap had reached $13.77 billion, which is a massive jump.
This means that it saw its market cap rise almost four times in just five days, going from nearly $3 billion past the $12 billion mark.
Only three weeks before reaching this mark, it had a market cap of just $500 million. One of the main reasons for this massive jump has been tied to the announcements made by the founder Justin Sun that the company had a number of major partnerships lined up shortly.
The startup itself has the goal of being a distribution system for free content in a global setting. They want to give access to creators to be able to quickly publish, store and own their own data which will allow them to better protect their work via copyright.
It was in December 2017 that they officially signed a deal with a bike-sharing company in Singapore called oBike that has more than 10 million members across three continents. The agreement will see the bike sharing company launch their own coin on the TRON network which will allow users of their bikes to pay via these oCoins.
However, everything is not as rosy as it appears. There have been a lot of rumors that the Sun has been selling off his coins, to the tune of 6 billion TRON tokens by some accounts.
Investors were disappointed to find that perhaps the founder was cashing in his TRON coins, thus dimming the seemingly bright future for the crypto coin. Ironically, this came just after Justin Sun tweeted to Charlie Lee that they have locked up all #TRX till 2020.
I love @SatoshiLite and @litecoin. It is a pity that @SatoshiLite has sold all of his LTC https://t.co/dWQIfWaP58 but we locked up all #TRX we have until 2020 https://t.co/stpx1rFkUR because we have confidence in #TRON and devoted our lives to it. https://t.co/oUrPtkr0Jd
— Justin Sun (@justinsuntron) January 4, 2018
The other potential alternative that people were thinking was that this was a classic pump and dump scheme whereby the token was talked up and hyped up so much that major holders enjoyed significant gains.
However, these rumors have not been confirmed as of yet, with Sun having denied these allegations on his Twitter.
The Reddit account is not my account and also foundation account. It belongs to our private investor and market maker. We don't have an account in @GeminiDotCom. The market maker uses an account to trade and increase the liquidation of #TRX not sell $TRX.
— Justin Sun (@justinsuntron) January 6, 2018
Despite the controversy, the future of TRON still holds legitimacy. Keep a close eye out for more partnerships in the future of this popular media-based coin.