The crypto world is full of innovations and new projects. The recent crypto market crash was a harsh one for the whole crypto community. Many people are leaving their crypto positions and waiting for the end of the downtrend. Yet, this crash was like no other. This post is all about Justin Sun and whether should you invest in Tron. Let’s take a look at it in more detail.
What is TRON (TRX)?
Tron is a blockchain that strives to enhance transaction speed. Tron vows to be able to process 2,000 transactions per second, compared to 6 and 25 transactions per second (TPS) for Bitcoin and Ethereum, respectively. It’s a decentralized platform for knowledge exchange and entertainment. In 2018, Tron purchased BitTorrent, a well-known file-sharing service. The project founded its algorithmic stabelcoin which was marketed as a success.
However, after the UST crasht bad media, even stablecoins became treacherous. Investors began liquidating and removing their capital from exchanges, which in turn made halting withdrawals. This took a serious toll on USDD, which began to lose its peg, thus impacting TRON prices.
How does TRON work?
TRON utilizes a three-layer architecture. It includes the core layer, storage layer, and application layer:
- The core layer executes the primary rudimentary jobs for the blockchain. This contains validating transactions, handling accounts, and reading smart contracts.
- The storage layer is made to manage complicated data storage. It’s divided into blockchain storage and condition storage.
- The application layer is utilized by developers to create dApps and configured wallets. There’s a various spectrum of applications that can be made since TRON sustains smart contracts.
In the beginning, Tron peddled itself as a type of new internet and worldwide unrestricted entertainment system. Tron purchased Bittorrent in the summer of 2018 and allocated a token in early 2019 (BitTorrent token/BTT) that can be utilized to pay for file transfer services. This has transformed self-portrayal.
The project is best understood for its extreme marketing. Justin Sun has a history of aggressive marketing to remain in the news. This often goes so far that false statements are made. For example, on one fine day, Justin Sun announced on Twitter Tron’s partnership with Liverpool football club. It turned out to be fake news.
USDD lost its Peg to USD
Decentralized USD (USDD) is an algorithmic stablecoin on Tron. It is believed to maintain a one-to-one exchange rate with the U.S. dollar. It depends on an intricate, automated balancing instrument that applies alternately building and eliminating units of USDD and TRX.
In June 2022, the Tron network’s stablecoin, USDD, lost its peg to USD. As a result, its price dropped to as low as 91 cents, as crypto markets declined as investors are worried about persistently high inflation, tautening financial conditions, and a possible recession.
Should you invest in TRON?