Monday, 03 August 2020

TRON is betting on New Stablecoins

In an age when stablecoins are cool can TRON become more relevant?

On March 4th, 2019 there was a big announcement for the future of stablecoins. Tron and Binance Coin are some of the hottest cryptocurrencies so far in 2019.

Blockchain protocol Tron (TRX) and Tether, issuer of stablecoin USDT, have announced a partnership to introduce USDT to the Tron network by the second quarter of 2019. If only 38% of Millennials play the traditional stock market, this means GenZ are likely to play the cryptocurrency market instead. In 2019 Tron has been making a lot of noise but this is a very interesting development.

- Tether is gearing up to launch its controversial stablecoin as a native token on the Tron blockchain.

- TRX is making a lot of bold claims which unfortunately don’t make a whole lot of sense.

But you have to appreciate Justin Sun’s ambition as TRON is one of China’s best bets to hijack the future of public blockchains away from the likes of Ethereum, EOS, Stellar, Cardano, Dfinity and others.

Tether is partnering with the Tron Foundation to launch the dollar-pegged USDT stablecoin as a TRC-20 token.
Does this herald more credibility for the future of TRC-20 tokens?

The cryptocurrency market is getting more entertaining to watch as the crypto winter means a few monopolies are likely to survive, where Binance and Tron are showing considerable potential in 2019. Meanwhile older platforms like NEO and Ethereum needs to prove they can continue to scale.

Will this tempt Institutional Investors towards TRON?

- Per the announcement, the integration of new stablecoin on TRON blockchain would increase DEX liquidity

- The deal if all goes well could improve transaction and exchange of fiat-pegged coins across the blockchain

- The stablecoin could make Tron more accessible to institutional investors by providing the stablecoin option to the network

The USDT, which launched in 2014, has traditionally facilitated frictionless fiat on- and off-ramping to the crypto markets but have been maligned by considerable controversy.

Tron not NEO is the “Ethereum of China”

The new version of USDT is expected to launch sometime in the next quarter. Tron claims that the addition of USDT will therefore “elevate its existing decentralized applications (DApps) ecosystem, improve overall value storage, and increase Decentralized Exchange (DEX) liquidity.

Even in the pit of the crypto winter, EOS and Tron are still using the same hype-game of bumping up their ecosystem and positive network effect. Seeing as stablecoins have become more popular over the last year, it’s not surprising to see this partnership occurring.

USDT on Tron will also could in theory make the blockchain as a whole more amenable to enterprise-level partners and institutional investors. If all goes well!

TRC-20 is a standard on TRON blockchain –much similar to rival ERC-20 token of Ethereum, and Sun appears to be pushing as hard as he can to make Tron more relevant globally.

According to CoinTelegraph, Tether, continues to command the lion’s share of the stablecoin market, is nonetheless seeing increasing competition from a steady stream of new fiat-pegged offerings as of last year. It’s the age of STOs, stablecoins and the likes of true consolidation from a few winners and if Binance is truly expanding, the likes of TRON and EOS are still faking it till they make it.

By Michael K. Spencer

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