Hello TRON (TRX), it’s a bad day!
TRX is sliding pretty fast as its price drops double digits after successful testnet launch.
One thing is indisputable here: The TRON Foundation and the TRX team have delivered yet another milestone as they inch ever closer to their mainnet.
It is one step that should help bring a new era to the revolutionary ideas behind the project. And as the team presented what they called “the future of TRON” expectations were moon high for TRX and its fervent community.
However, what looked like the beginning of a new dawn has quickly been followed by a cloud of despair for enthusiastic TRX investors. The falling price goes against what mostly happens when positive events like this one take place.
Beginning of new era, but on a very low note!
At the live launch presentation, TRON founder Justin Sun emphasized that what he really cared about is the future of the project and not the price of its native coin, at least not in the short-term. He talked about the how this important event marked the completion of the necessary infrastructure needed for TRON to finally deliver on its blockchain ideas.
At the event, it appeared all was set and a celebration was on the cards. On his Twitter page, Justin promised that the future had just begun and TRON would keep going.
But in a matter of hours, TRX has plummeted at a market-high -20.19% over the 24 hour period. This comes after the cryptocurrency had surged in value to rise to the top 10 in the market. But hardly had the microphones been disconnected than prices began dropping and now TRON is down to 13th position.
At the time of writing, TRX is the worst performing coin in the market’s top 50 as can be seen on the 24h charts by CoinMarketCap.om. The coin opened at $0.0425 on Saturday morning and briefly rose to trade at $0.0428, but has shed ground so quickly to leave some investors cursing the losses they have incurred. It is now trading at $0.0355.
Many hoped that the price would appreciate after the launch. It still may, but the events immediately are confounding, to say the least. The launch of the test net was perhaps over-hyped by the TRON team and its community. Bagholders believed the price would surge, but could now be panic-selling to avoid getting into even more murky waters. They are the ones calling for sell-offs. However, others believe the long-term value of TRX is not debatable with such a step as the test net launch. For such a group, hodling is the best thing.
The 65+ billion TRX in circulation is one aspect that plays against the value of the token. There was a great deal of hype concerning a coin burn that would have a big impact on the price value. It was expected that TRON would undertake a coin burn to help give the value of TRX a boost. An announcement that the community had been holding out for did not come. And that seems to have hurt sentiment for some, prompting a rush to sell. Nevertheless, a mere coin burn can’t guarantee that this token will rise overnight.
Even though this test net represents a definite step in the right direction, other factors could come into play and distort everything. And to echo TRON founder Justin Sun, the belief in the future of the project should supersede short-term price values. The coin burn represents one way in which the team could ensure a balance in supply-demand, and therefore, value.