Yesterday, Justin Sun sent out a tweet comparing Tron (TRX) to Ethereum (ETH), and his followers on tweeter were clearly not impressed. Many of them were not impressed. The prevailing theme in the replies was that it is too early to start comparing Tron (TRX) to Ethereum (ETH). However, most of the criticism was driven by the fact that Tron has not performed so well after the main net launch. This is clear in the replies he got for his tweet regarding the $10 million bounty. Instead of appreciating the bounty, Justin got replies like the ones below:
Is it then time for Justin to tweet less? Well, that really depends on what he tweets about. There is no denying that Justin Sun is one of the most influential figures in crypto space. As such, whatever he tweets, has a huge impact on investor perception. Unfortunately, that influence can also have a negative impact on short-term valuations, especially when they raise expectations, and then the price fails to meet them. Take the main net launch for example. Justin tweeted a lot about it, and now that prices have not shot up significantly after the launch, it has led to short-term frustration. The best approach would be to tweet less, and only tweet when there is something huge is about to happen within the day. It would increase the value of such tweets based on the scarcity principle. People tend to put more value to what is scarce.
Other than the tweets, Tron (TRX) is an awesome project. The team behind it clearly believes in the success of this project. It’s easy to tell this by the amount of money that they have put up for testing its security. The team has put up a $10 million reward for anyone who can help find bugs in the network. That’s incomparable to the $10,000 that EOS put up for the same purpose. The fact that they are willing to stake such a high amount to purposely draw in hackers, means that they have faith in this project. They know that once Dapps start flowing in, this will be one of the most important blockchains in the world, and at that scope, $10 million will just be a small drop in the ocean.
Therefore, investors should hold Tron (TRX) with the long-term in mind. The price may not have shot up after the main net launch, but that doesn’t mean that it will remain low for good. Justin Sun has already hinted at a coin burn in the future. If this happens and takes a good chunk of the coins off the market, it will see the value of Tron (TRX) increase by a huge margin. That’s because it would cut the supply of Tron (TRX) and as demand increases chasing a fewer number of coins, price would rise. Besides, Tron has huge potential in the entertainment industry, and could see its value shoot up to double digit valuations.