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Here Is How The Tron (TRX) Token-Burn Will Affect The Price of TRX

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TRON
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In an announcement via the Tron (TRX) Foundation medium page, the team at Tron made it known that they will conduct a coin burn of 1 Billion TRX all at once, to commemorate the exciting event that is The Tron Independence Day. This amount in TRX roughly translates to $50 Million worth of the digital assets.

According to the announcement, this amount might set world records for the highest amount of money or its equivalent, destroyed in human history at one go. The amount of TRX at the beginning of the MainNet launch will be reduced to 99 Billion TRX with the remaining 33,251,807,524 TRX held by the TRON foundation will stay locked until January 1st, 2020.

So how does this affect the price of TRX?

Considering the fact that the Tron Foundation will burn TRX from the amount in its possession, this act only reduces the total supply of TRX and not the circulating supply of the digital asset. When calculating the price of a stock or cryptocurrency, it is the circulating supply that determines the supply and demand dynamics that determine the price of an asset.

This means that the coin burn will not directly affect the price of the digital asset. All it does is guarantee that there is 1 Billion less TRX possessed by the Tron Foundation. Perhaps what might drive the price up, is the guaranteed lockup of the remaining TRX by the Tron Foundation. This will give investors more confidence in the digital asset.

One can remember the market response of the Ripple camp locking up 55 Billion XRP in escrow. This guaranteed that the company would not ‘flood’ the digital asset in the markets. Investors were pleased and the value of XRP went up for a good while until mid-January.

So how else will the price of TRX go up?

As earlier demonstrated by Global Coin report, the increase in the price of TRX will be brought about by a stable and secure MainNet blockchain that will be the choice of the many DApp developers out there. With a solid product, comes the attention to the project and coin. This is a manner similar to how Ethereum managed to climb up the market cap ladder from mid last year to the current number two spot according to coinmarketcap.com.

There is also the transactional TRX coin burn that was highlighted by Justin Sun during the launch of the MainNet on the 31st of May. There will be a burn of 0.1 TRX when a new account on the platform is created and transfers cost 0.001 TRX. This means with time, the circulating supply of TRX will gradually decrease hence pushing the price of the future TRX coin up.

That said, the value of TRX has been affected by the general decline of the cryptocurrency markets. TRX is currently trading at $0.045 and down 6.21% in the last 24 hours. Perhaps as we inch closer to the Independence day that is less than 2 days away, the price of the Token will reflect the excitement of the Tron believers and HODLers.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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