TRON (TRX)–To commemorate TRON’s Independence Day on June 25th (the official start of Main Net’s genesis block), the TRON Foundation is planning a coin burn of 1 billion TRX, worth nearly 50 million USD. As the press release states, the burn will constitute the largest destruction of money in human history. In addition, the 33 billion TRX combined fund of founder Justin Sun and the TRON Foundation will be placed in a locked account until the start of 2020, which further negates the rumor of Sun selling his primary holding in early January. The amount of TRX at the beginning of mainnet launch will be reduced to 99,000,000,000TRX, and the remaining 33,251,807,524 TRX held by TRON foundation will stay locked until January 1th, 2020. Purpose of the TRX Coin Burn While TRON is no stranger to marketing stunts, the one billion TRX coin burn has a much larger purpose. In addition to increasing the individual value of each token, the burn will have a systemic effect on investor attitudes towards TRON. Installing a Sense of Scarcity The 100 billion coin supply currencies have found themselves in a bit of a predicament. Regardless of the inherent divisibility of cryptocurrencies, high supply coins offer greater market liquidity, which is a benefit to both exchange speculators and users of the coin. It also keeps the price-per-coin low, which, from a buyer’s standpoint, provides some psychological distance from the intimidating price of Bitcoin (the average, non-crypto investor will see BTC’s elevated price as a barrier to entry). However, the high coin supply also negates the feeling of scarcity that has arguably driven the price of Bitcoin and Ethereum so high over the preceding year. Fear of Missing Out is a strong, enabling force for Bitcoin investors, in the sense that BTC has a relatively small circulating supply (which also increase the danger of contentious hard forks). By burning 1 billion TRX (which amounts to 1% of the total circulating supply of the coin), Justin Sun and the TRON Foundation are signaling to investors that they are committed to raising the intrinsic value of the currency. The immediate aftermath of the coin burn is not to bring about a 1% increase in price, but to offer long-term leverage to the investment base, and to provide a touch of the aforementioned scarcity that has proven valuable to low-supply coins. In effect, the TRON Foundation is burning 50 million USD they have control over now to further the interest of the currency as a whole in the future. This move comes in addition to Project Genesis, a 2 billion USD resource fund to grow the development of Main Net and TRX-based applications. The TRON team has proven they are willing to forgo immediate profit in an effort to raise long-term value, which is a sentiment investors can easily recognize. Catering to the Needs of Investors (and Eventual Users) The TRON Foundation has figured out the game of cryptocurrency-related marketing: almost all of the currencies on the market, even Bitcoin (in the absence of Lightning Network), are not ready for the type of adoption necessary for real usability. That’s not to say the currencies don’t have potential in the world of digital marketplaces and fintech development–they are just not at the point of feasibility. This past January’s bull run, when average BTC transaction fees jumped above 55 USD, proved that cryptocurrency has a long way to go before achieving the scale necessary for market saturation. TRON is targeting the needs of investors now, in an effort to draw greater attention to the currency and build the foundation for its user base. The honest truth is there is little reason to own TRX (or almost any currency), outside of what it offers through price speculation–at this point in time. That will drastically change with the development of the Main Net platform and the integration of crypto into IoT devices and smartphone app marketplaces. The TRON Foundation is getting ahead of the war for growing user bases by building a fervent and committed investment base. Yes, investors drive up the price of the currency which directly benefits the TRON Foundation and Justin Sun’s holdings. But it also keeps the currency in market spotlights and media headlines, in addition to giving incentive to current holders to refrain from selling their TRX. Despite the massive fall in value for cryptocurrency over the last six months, there is a hesitancy to sell TRON if TRX continues to decrease in availability. While markets rarely behave in a rational nature, coin burns on the scale of billions do grab the attention of investors and give TRON a small degree of appreciation that has largely been lacking since its release. Some will continue to view the coin burn as another attention-grabbing, publicity gimmick by the TRON Foundation to keep the currency relevant in the news cycle. After all, even with the destruction of one billion tokens, Sun and the TRON team command over 33 billion TRX (worth 1.4 billion USD). However, keep in mind the company is actively destroying 50 million dollars worth of currency. Even if the burn is a calculated attempt to raise awareness for TRON, it still comes at a personal cost to the developers of cryptocurrency. Instead, TRON’s coin burn is furthering the interaction between the team behind TRX and the growing investment base. As opposed to most transactional currencies, TRON is relying upon its growing user base to both develop and participate on Main Net, thereby increasing the overall value of the technology. A 50 million USD investment today could bring billions in return if the TRON team can manage to establish a digital platform to rival other media networks.<doc-sep>The Tron (TRX) project evidently has grabbed the global spotlight for the past few months. It all began with the release of the TestNet on March 31st. Then there was the release of the MainNet on the 31st of May. The MainNet release was actually moved up and released at an earlier date than earlier outlined in the project’s roadmap. Initially, this was meant to happen on the 1st of July. With the MainNet launched on the 31st of May, three major events are what awaits the Tron Community in the next few days as outlined below: TRX token migration from the 21st to the 24th of June on the numerous exchanges. A permanent token swap platform will be available on Binance for users who will not make the deadline on the 24th of June. Tron Independence Day that is less than 4 days away. The Tron Foundation has already provided an online guide to the event Super Representative Elections on the 26th of June Therefore, with these 3 major events in the coming days, is it possible to predict a TRX price rally as we inch closer to each? Earlier on in the day, Justin Sun had noted via twitter that TRX had edged out IOTA from the number 9 spot. IOTA has since reclaimed the spot but the difference in market capitalization between the two crypto assets is currently approximately $41 Million. This means that as we inch closer to the Tron Independence Day, TRX will edge out IOTA once again. Justin Sun’s goal, is to see Tron (TRX) become a top 6 coin once again. Analyzing the performance of the token over the last seven days, indicates that TRX bottomed out on Monday, June 18th, when it was valued at $0.041. The token is currently valued at $0.048 indicating a 17% increment in 3 days. TRX had also reached a recent peak of $0.0505 on Tuesday, June 19th. Summing it all up, the big questions moving forward are, will TRX manage to stun the crypto markets with a continuation of this rally up until the Super Representative elections on the 26th? Will we see the value get to the elusive $0.10? Or will it be a false take off influenced by the Coinrail and Bithumb hacks? Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.<doc-sep>It almost seems as if all cryptocurrency markets are bound for a solid rebound. Although it is a matter of time until this happens, the current 24-hour trend looks pretty interesting. Especially where the TRON price is concerned, good things are happening. An overnight 20% gain is nothing to sneeze at. TRON Price Returns to Bullish Form Although there is a good chance all of the current cryptocurrency market gains will be eliminated in the days to come, there is a temporary reprieve to enjoy. All markets are in the green for the first time in a while. More importantly, they are in the green in very spectacular fashion, with the TRON price showing the biggest gains over the past 24 hours. Albeit it is not the first time in history the TRON price shoots up by over 20% in 24 hours, few people expected such a turnaround at this time. Considering how all markets have turned extremely bearish for most of 2018, such positive momentum seemed a faraway dream. Even so, the TRON price shows it is possible, and its value has surpassed $0.05 once again. There are also some strong gains against both Bitcoin and Ethereum to keep an eye on for TRON holders. The TRX/BTC ratio improved by 15.42%, whereas the TRX/ETH ratio gained 11.43%. All of these trends are extremely bullish for the short-term TRON price, but from a long-term perspective, they may not result in what most people are looking for except for more volatility. With the overall cryptocurrency trading volume picking up the pace again, all markets are seemingly flourishing. The TRON 24-hour trading volume has surpassed $300m again, which is a slight improvement compared to the days prior Maintaining this positive market attitude will be very challenging, regardless of how things may look as of right now. Once again, it is South Korea effectively “pumping” the TRON price in quick succession. Both Bithumb and Upbit generate a tremendous amount of volume, whereas Binance’s BTC and USDT pairs are well behind the curve. OKEx’s BTC market is in fifth place with a third of Bithumb’s volume. Bullish momentum from South Korea can be significant as more time progresses. Even though all cryptocurrencies are in the green, it remains to be seen for how long. As has become apparent this year, any major spike upward is usually followed by a sharp dip shortly after Whether or not history will repeat itself once again, remains to be seen. This is far from the expected “moonshot” for the TRON price or any other cryptocurrency, for that matter. Image(s): Shutterstock.com<doc-sep>
“To commemorate this exciting moment, TRON Foundation will conduct a burn of 1,000,000,000 TRX all at once,” Tron’s announced. Tron price is holding tight to the lower trendline of Andrew’s Pitchfork. Tron network commenced its token migration yesterday. The token switch is supported by various exchanges including the largest exchange, Binance. The users are expected to send Ethereum-based TRX tokens to the exchanges, which will be transferred to Tron mainnet. The holders will then receive an equal amount of tokens at the completion of the migration process. The Tron community is also anticipating a big event on June 25. The network will hold its first elections on this day. The day will mark the independence of Tron in the industry. The founder of Tron, Justin Sun announced on twitter that the Foundation will be celebrating the day by burning 1 billion coins. A section of the official announcement on Medium reads: “To commemorate this exciting moment, TRON Foundation will conduct a burn of 1,000,000,000 TRX all at once, which is worth 50 million USD according to today’s market price.” In continuation, it says, “This may set the record for the most amount of money destroyed in human history in celebration of a historic moment. The amount of TRX at the beginning of mainnet launch will be reduced to 99,000,000,000TRX, and the remaining 33,251,807,524 TRX held by TRON foundation will stay locked until January 1th, 2020.” Tron price analysis Tron price is holding tight to the lower trendline of Andrew’s Pitchfork while the Bulls are battling to reverse the trend above $0.040. The digital assets are bleeding on Friday, and word is that the prices are reacting to the Financial Services Agency in Japan having sent improvement orders to at least six cryptocurrency exchanges. The biggest exchange in the country, Bitflyer Inc. is also among the exchanges in the spotlight. Technical indicators on the chart show that the bears have the control. The stochastic is deep into the oversold territory while the price is trading below the moving averages. If the price breaks below the supporting trendline of Andrew’s Pitchfork, TRX/USD could break down below the key support at $0.040. Tron price is risking declines to test the previous lows at $0.023 traded in April this year. If the buyers can force a reverse above the immediate supply zone at $0.050, TRX/USD could gather momentum to approach the key supply zone at $0.060. TRX/USD 4-hour chart