Tron (TRX)

Purpose

“TRON is a blockchain-based decentralized protocol that aims to construct a worldwide free content entertainment system with the blockchain and distributed storage technology. The protocol allows each user to freely publish, store and own data, and in the decentralized autonomous form, decides the distribution, subscription and push of contents and enables content creators by releasing, circulating and dealing with digital assets, thus forming a decentralized content entertainment ecosystem.”

As stated in the website

“Peiwo App with over 10 million users will become the first TRON-compatible entertainment APP.”

Also stated in the website: But I couldn’t understand the Peiwoo app as it is in Chinese. I will try to get feedback from some Chinese friends on how good/popular the App is.

ParticularsDetails
CompanyTron Foundation
Based out ofSingapore
TeamSee Team Below
No. of Tokens100 billion
Mineable/Not MineableMineable
Underlying PlatformIndigenous
TeamDesignationCareer Highlights
Justin SunCEOFounder of Peiwoo App
2015 & 2017 Forbes China, 30 under 30
Protégé of Jack Ma, founder of Alibaba group
Global Shaper, World Economic Forum
Lucien ChenCTOApparently worked in several first tier internet companies: Netease, Tencent, Qihoo & SM Search
Keelson YangTechnical DirectorBachelors: Computer Science, Tsinghua University
Held positions in UFIDA, a leading Chinese enterprise solutions provider

Comments

Unfortunately, I couldn’t find much info about the team apart from Justin Sun, who is being tipped as the Protégé of Jack Ma. He has been recognized by Forbes twice in their list ’30 under 30’. But unfortunately, it is hard for me to give a proper and well informed verdict apart from the fact that Justin Sun is capable enough, considering his achievements. However, the rest of the team, though they seem highly accomplished on their team page, are difficult to figure out since most of their info is written in Chinese, and most of them are not there on Linkedin. I will get back on this.

In short however, I am impressed by the team, just because of the Media buzz that they’ve been able to generate. It is not always that one manages to do that.

Closing CommentsIf the project stays true to their vision, then the implications are huge. And prima facie the team seems to have the expertise needed to pull it off. They have the right skills, and the right marketing abilities to be at the top.
X FactorTheir CEO seems to be a very well connected individual, and well known. Not every day does the media stick a moniker like, ‘The next Jack Ma’, on somebody.
Do I see it existing 5 years down the lineYes, their road map is very drawn out, and it does appear to have the use case and the means of funding to do this.
RatingJanuary 6, 1900

Detailed Rationale

What does Tron intend to do?

So, what is Tron? How will life with Tron be like?

Imagine this.

There are 3 apps that you use regularly, Uber, Foodpanda, Facebook. Now you are gaining some coupons from say Uber for referring new users, helping out foodpanda by reviewing restaurants, and enriching facebook with content that you create.

Now say, all these three companies decide to give you coupons for your work on their platform. Now you can use these coupons to do things that the company allows. Say Uber allows you to use the coupons to give you some %age off your next ride. Foodpanda’s coupons enables you a discount, the next time you order food. And facebook, gives you some coupons/tokens, with which you can avail services from any of the companies that facebook has tied up with. So these coupons/tokens that you are being given to use and enrich other platforms, can be used by you as a form of currency to avail goods and services.

But these companies, don’t give you any reward for creating content do they? All these companies provide a platform for us to reach out to our audiences, but they exercise complete authority on what we post, what we earn. Youtube, facebook, instagram, all such companies are examples where we create content, but we are at the mercy of our overlords. Facebook, youtube will blatantly censor you, they’ll decide what the size is, of the check that you receive for your content. If youtube earns 1 mn from your content and gives you a 20% of it, or as per its whims and fancies 50% of it, there is nothing you can do. And as days go by these companies are slowly adopting a monopolistic attitude, and if youtube somehow manages to muscle out all of its competitors, and makes it completely unprofitable for any startup to challenge, then suddenly they have all power over your content.

Tron will try to bring the power back in the user’s hands. Imagine now there is a website built with collaboration with Tron called trontube, and they have a process of giving you coupons for each video you post based on the number of viewers, likers, and subscribers it generates. Now in trontube, the system gives you rewards in this coupon called say, tubecoin. Now you get a lot of tubecoins, and then you can convert these tubecoins into Tron (TRX). Now the exchange rate for tubecoins into Tron (TRX) will be based on some kind of market mechanism.

Now there is a central exchange where the main coin is Tron (TRX). And on that exchange all the coins that there are from companies affiliated with Tron are listed. They have their own market dynamics, their own demand and supply that influences the exchange rate. Now let’s remember the previous example, where we were including facebook, foodpanda, uber etc as participants in Tron. Say they all have their own coins. Now fbcoin, fpcoin, and ucoin respectively are also being traded along with tube coins. But you have posted a great video, and earned a lot of tubecoins, but you want either food, or an uber ride! So you convert your Trontokens into the tokens of the respective companies, and you can buy food as well as transport from your tubecoins. Now say you want something like cash, from which you want to avail a services that is not listed in the Tron exchange. So you can just convert it to Tron and send it over to one of the mainstream exchanges and convert it into BTC or ETH and then exchange it for fiat currency. This you have money now for the content you generated!

Question: But youtube performs a service, like match advertisers to videos, wont the central platform take a cut for that?

My Personal opinion: I think that this is what the miners in Tron will do. They will perform the job of matching advertisers who will have to pay transaction fees to get their ads listed on the site. Or maybe they’ll have to pay in Tron to get their ads placed at the right place, and an internal algorithm will take care of that. I would love to learn your opinion and thoughts on this.

Tron Adoption

Now people who do not create content but maybe wants to avail services from one of the Tron affiliated companies, which gives them discounts for exclusively using Tron coins, will have to have Tron. And they will buy Tron thereby pushing prices up.

Future:

I do feel, based on its utility, the vision, and the ability of the team at Tron, that this will witness a huge price increase. However having said that, if the team do realize their vision, that’ll be quite a huge disruption. If people have seen the movie ‘In Time’, where time is used as a currency, we will have a currency based on everyone’s productivity. Lazy people will be forced to not be lazy, lurkers in reddit/fb, would have to come out of their shells and contribute to the community, eaters of eateries would be obligated to help/criticize the eatery by reviewing it on some platform. This is straight out of a sci-fi movie and very farfetched. Such changes will not come without significant backlash from the existing system. But then again, imagine this, if one had asked a 30 year old guy in 1980, about how we’d live today, constantly connected, clicking pics with mobiles, and watching porn on demand, he’d say that’s impossible! But look at us now!

This blog has been very helpful, this is another great resource to form an opinion about Tron. Tron

Update: I feel that it is my duty to tell you about certain speculations about this coin that has happened post my writing of this article.

1. First the CEO releases the white paper in Chinese, when he clearly knows that there is a huge chunk of his reader base that cannot read Chinese. This would have been acceptable had it been a company that targets only the Chinese market. I consider this a legit concern.

2. After he posted the white paper in English, it turned out to be plagiarized.

3. His first app, the Peiwoo, is not really very popular in China! So that is again him trying to market something to us that is not true.

4. I asked about his connections with Jack Ma, it seems as if there is nothing much to say about it other than the fact that he was probably a student of an institution founded by Jack Ma, and their links are not that strong.

5. I checked the Chinese subreddit where someone had asked them about what the public thought of him in his own country, apparently no one considers him highly, and people mostly consider the venture as a scam. According to them:

a. His app is not popular in China, unlike what he portrays.
b. His connections with Jack Ma is superficial.

6. Coupled with the above concerns we have someone selling of 6 bn TRX a few days ago, that Justin claimed was the address of a market maker.

7. He claims that he has locked his TRX for 2 years, whereas unlike in the case of Ripple where the coins are in a cryptographic lockup, he has only kept his stash in a cold wallet. He can at anytime sell it off. Although he claims that since the public can see it, it is just as secure, but come on, if he decides to stray, what good will we do as spectators? He has cited reasons about ethereum being unsecure.

My verdict is that Tron is a volatile beast, and results in wild upswings and downswings, and that will continue for a while. It is a trader’s pick more than a hodler’s pick. With respect to its current stage of development, the appreciation of Tron has been good. But I think it’ll be range bound for quite a while, between its $ 0.05 and $ 0.20. If you are a hodler, be prepared to hodl long, 1-2 years.