It was always a given that the larger the crypto market gets, the higher the number of scams the industry will attract. And the biggest scams in the crypto scene are not the shady “account managers” who send endless emails but vaporware.
These are basically software products that are overhyped but lack real value as they’re still under development, or don’t exist. In this article, we’ll look at the curious case of Tron, which has been accused of being vaporware.
What is Vaporware Crypto?
In the crypto-sphere, vaporware are coins that are promoted, and actually have a logical concept, but don’t get released to the public. This is mainly because they’re scams or have unworkable concepts.
However, having an ICO alone is not enough proof that a cryptocurrency is legit. The market cap and the contents of the white paper also matter.
With this definition, TRX is not vaporware as it had an ICO, running from August to September 2017. And the project managed to raise more than $70 million.
However, the current market cap of TRX is about $5.8 billion. This is significantly lower than its peak cap of $16 billion in 2018. Other factors are discussed in further detail below.
Why Tron Can Be Vaporware
Tron has the look, and feel, of a classic vaporware, and is best treated as such. That is, until it develops a legitimate use as is the case of Ethereum and Bitcoin.
If you’re wondering why we don’t trust the concept that much, check out our reasons below:
1. Unusual Price Movement
When it was first launched in late 2017, the Tronix (TRX) coin was only worth $0.0020. Within days, it skyrocketed to $0.30, attaining a market cap of $16 billion and briefly becoming the 6th most popular cryptocurrency.
The good times didn’t last for long as the coin quickly plummeted back to slightly above its original price.
Tron’s price stagnation across the years is in stark contrast with the trajectories of other cryptocurrencies like Ether and Bitcoin.
The coins were similarly low-priced in 2018 but gradually increased their values once their utilities became clear. For Tron, it is vice versa.
2. Too Many Scandals
One of the surefire signs of vaporware is their fixation with scandals and publicity stunts, and Tron has been caught up in plenty of them.
The first and probably most damaging scandal was the plagiarism scandal discussed in more detail below.
The other scandal arose from the developers’ failure to mention that the Tron application was indeed just a Java implementation of Ethereum.
Last but not least is the 2019 reveal by HackerOne, a cyber-security testing and development platform, that the Tron blockchain was built on sand.
According to tests performed by hackers on the site, DDoS attacks from just a single computer could overload the blockchain’s memory and take it down.
3. Inauthentic White Paper
Just weeks after it went public, crypto enthusiasts noticed the entire project was copied.
Indeed, Tron’s white paper is eerily similar to those of Filecoin and IFPS. Both were released much earlier, which leaves no doubt as to who copied who.
Further, Tron’s fundamental concept is heavily borrowed from LBRY, another decentralized file-sharing system.
Also read: Is Cardano Vaporware?
What is TRON Coin Used For?
First off, it is worth mentioning that Tron is a blockchain-based media sharing and entertainment platform.
It allows content creators to directly share their content with their followers and earn all the royalties, without having third parties take cuts.
The Tronix coin, on the other hand, is basically the in-house currency and is primarily used by users to purchase content and support content creators.
If you are totally sold on the concept, you can use your TRX tokens to gain voting rights – called Tron Power. These typically accumulate when you lock away your coins and give you a say on the future progression of the network.
Like other cryptocurrencies, TRX can also be used as a store of value or exchanged for other coins.
Is TRON a Legit Cryptocurrency?
Yes, Tronix is traded on many top exchanges like Binance and BitFinex and is therefore legit in a sense.
Nonetheless, your financial advisor will probably balk at the thought of you including it in your portfolio. This is because it has a relatively small value (about $0.05) and its value has decreased and keeps decreasing, with time.
Is TRON a Shitcoin?
It may not be as valuable as Bitcoin or even the likes of Cardano, but Tron is not exactly a shitcoin. For one, it has an immediate purpose and its price is relatively stable. This is unlike the so-called shitcoins whose values periodically rise – driven up by coordinated “pumpers” – and fall.
Also read: Is Cardano (ADA) A Shitcoin?
Is Tron Better Than Ethereum?
There are several coins that are more valuable and popular than Tron, so the gap to Ether is not even close.
Matter of fact, Tron is itself built on the Ethereum blockchain, only that it is equipped with more advanced features.
Nonetheless, there are a few aspects in which Tron is evidently better than its predecessor.
For one, its smaller size means transactions are considerably faster taking an average of 6 seconds, while Ethereum takes a few minutes.
Tron also has low transaction fees, unlike Ethereum, whose defining feature is the exorbitant “gas fees”.
Will Tron Be The Next Bitcoin?
No. There won’t be another cryptocurrency anytime soon that captivates the world in the way Bitcoin did.
This is not only because Bitcoin’s utility and value is going to increase with time, but also because many countries are coming up with their own digital currencies.
What Companies Use TRON?
With the rate of cryptocurrency adoption gradually increasing, there are quite a number of businesses that accept Tron payments.
These are mostly in the hospitality and entertainment industries and include businesses such as:
- Tron Store
- Alternative Airlines
- Peiwo App
From our perspective, Tron is too complicated and scandalous to invest in for the long term. Its basic concept of removing middlemen out of the content game is nonetheless commendable and practical, but we doubt if Tron is the right network to accomplish that. We don’t know what the future brings though, so it’s best to keep an eye on the coin, and other networks like LBRY to see which of them come out on top.