TRON (TRX) Fundamental Analysis 1 May 2018

Dear Steemit friends,

TRON (TRX) rose over 100% in April 2018.

Market capital of TRON just broke into top 9 of crypto currency
(https://coinmarketcap.com/).

I prefer to write fundamental analysis rather than technical analysis for TRON, the reason is rising price of TRON is affected by demand that caused by issue, news and social media. Biggest factor of supply is determined by TRON’s developer because TRON is premined cryptocurrency, supply of TRON is controlled by TRON’s developer. Market issue will not be reflected by chart that is why fundamental analysis is better than technical analysis.

TRON currently is just whitepaper and testnet. They do not have real product. The real product or the main network (mainnet) will be available on 1 June 2018. So what makes its price rising is expectation of the trader that price willcontinue rising. Any good news will make the price continue rally. So what is the news ?

1. Supported Exchange

TRON is supported by major exchange (Bittrex, Binance, Bitfinex) and more than 50 exchange suppport TRON trading. To be listed in major exchange, coin creators are charged up to $ 1 million per ICO. If they are listed in 10 major exchanges, it means they have spend $10 million. (Source : https://www.businessinsider.sg/cryptocurrency-exchanges-listing-tokens-cost-fees-ico-2018-3/?r=UK&IR=T)

It is good for trader no matter coin is real or not because they will pump the price to make return on their investment
To see the list of exchange you can open this link
https://coinmarketcap.com/currencies/tron/#markets

2. Initial Coin Offering (ICO)

In 2017 ICO Tron was able to raise $70 million (source : https://icodrops.com/tron/) . They have sold 40% of total token and currently TRON market capitalization is USD 6 Billion. They still have 60% of token. so they have token with value 60% x $6 Billion = $3.6 Billion. They cannot sell all the token because when the supply is bigger than the demand the price will drop. So they have to increase the demand before the mainnet available. The only way to increase demand is showing good performance on chart so they have to pump the price and sell their token to get more capital.
According to their press release they will not make additional TRX issue, it is good news since more token will make the token worthless.

3. Migration to main network

TRON only support exchange for migration from ethereum token to TRON main network. It could be a big problem when they have problem on migration. If you have tron on your ethereum wallet it will be worthless because after the main network available the TRX token is burned.
https://medium.com/@Tronfoundation/answers-to-frequently-asked-questions-of-tron-738b4653758a

4. Social Media

TRON maintenance their existence in social media. Currently social media is weapon, when they spend money on social media marketing they will get more exposure and get more demand.


Source : https://solume.io/

5. Whitepaper

TRON’s whitepaper is copied. Vitalik Butterin (Ethereum developer) mentioned in Twitter that TRON’s whitepaper is copy paste. Whitepaper is all about product, it could be that TRON is not as good as what they write on whitepaper. So I am not consider TRON for long term trading. I just want to make short term profit.


(source : https://twitter.com/justinsuntron )


(source : https://www.trustnodes.com/2018/01/08/TRONs-whitepaper-copied-plagiarized)

Main network of TRON will be released on 1 June 2018, no matter it will be success or not the price will rise before 1 June 2018. So I still hold Tron until end of May 2018, I am not a risk taker so I am going to sell it before the mainnet release.

If you have any comment please feel free to write comment. Please follow me to get the latest analysis.

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