Cryptocurrency investors, developers, and blockchain enthusiasts have taken a liking to Tron (TRX), a digital currency that seeks to decentralize content sharing on social media platforms and other online platforms by rewarding users with its native cryptocurrency.
Using peer-to-peer technology and distributed data storage, Tron aims to disrupt Internet monopolies like Facebook and YouTube, which control user data and content for profit.
Let us now take a closer look at what Tron is and how it works.
TRON is a blockchain-based protocol that aims to build a free, global digital content entertainment system with distributed storage technology and allows easy and cost-effective sharing of digital content.
It gives users the freedom to store, publish and own data. In its decentralized autonomous form, it decides the distribution, subscription, and push of content and enables content creators by releasing, circulating, and dealing with digital assets.
- It was developed by the Tron Foundation — a Singapore-based nonprofit organization that oversees the ongoing development of the Tron ecosystem.
- Tron’s internal cryptocurrency is TRX which can be obtained for free by participating in social account mining.
- The Tron protocol, which powers the TRON ecosystem, offers scalable, high-availability, and high-throughput support.
- The Tron network also includes smart contracts that can be used to execute transactions between users without the need for third parties.
- Tronix (TRX) can be used to pay for network resources on the Tron network; you need to use it to initialize a new account or upload any media files.
- The total amount of TRX is fixed at 100 billion, and no more will ever be created.
Tron was developed by the Tron Foundation, which was founded in September 2017 by Chinese entrepreneur Justin Sun, who also serves as CEO of BitTorrent, Inc. While Tron and BitTorrent are separate entities, they share ownership and some personnel.
Tron was launched in 2017 with an initial coin offering (ICO).
The founder and CEO Justin Sun announced his intention to create a new blockchain in September 2017 and launch it the following year. The Tron MainNet launched in May 2018.
The Tron mission statement is to “heal the Internet” by utilizing blockchain technology and distributed storage to create a decentralized content entertainment ecosystem. In this ecosystem, creators would have complete control over their content and be able to freely distribute it to users without being subjected to hefty fees from large corporations.
Users are free to visit any site where they have interests under the TRON network environment. This information will be stored on its server or client-side permanently through IPFS (Interplanetary File System) technology. These sites are also allowed to customize their virtual cards (TronCard) to meet the specific needs of different information publishers and consumers.
Unlike Bitcoin and Ethereum, which are powered by proof-of-work algorithms that are used to mine coins and create new blocks, Tron is built on the” Delegated Proof of Stake (DPoS) protocol.”
In this system, each user who holds TRX coins can vote for their preferred super representative candidate, who then acts as a representative on their behalf to validate transactions and generate blocks.
The validation process requires super representatives to verify that transactions are genuine and approved by users before adding them to the blockchain. This process is executed in real-time and does not require any transaction fees from users.
Moreover, because of its DPoS consensus model, Tron can process transactions with exceptionally high speed and scalability. It also allows for high transaction throughputs, making it suitable for use by decentralized applications (dApps).
The Tron protocol is essentially an improvement on the Ethereum blockchain; it uses Ethereum’s Solidity smart contract language and provides a similar level of security. It adopts a three-layer architecture that includes storage, core, and application layers.
The Tron blockchain offers developers several ways to build applications and conduct transactions on its network. It also supports the creation and issuance of native tokens through the Tron Virtual Machine (TVM).
Tron uses its cryptocurrency called Tronix (TRX), which can be used by content consumers to pay content creators for the digital content they access. Content creators also receive TRX as rewards for their contributions to the network.
To secure your Tron, you should use a hardware wallet such as Trezor or Ledger Nano S. A hardware wallet is a small device plugged into your phone or computer that generates and stores your private keys securely offline.
Even if you’re using a wallet for its features and convenience, a hardware wallet is still recommended for storing large amounts of Tron in a safe place.
We do not offer investment advice. However, the answer to whether or not Tron is a good investment depends on how you see the future of online media.
Many experts believe that the future of online media lies in decentralization, and TRX is a great way to get into the movement early on. For investors interested in the long-term potential of TRX, investing now could pay big dividends years from now.
Moreover, with a strong team working on its development and the TRX tokens being used across the dApps on the network, everything suggests that TRX could be a good investment for your portfolio and could see widespread adoption in the future.
Find out more about TRON at https://tron.network
Everything You Need to Know About Binance USD
Binance USD (BUSD) is a fiat-backed stablecoin designed to address issues of accessibility, flexibility, and speed on the blockchain. A cryptocurrency exchange leader, BUSD, is currently the second-largest stablecoin on the blockchain by market cap.
This flexible cryptocurrency is stable, regulated, and can be swapped on multiple blockchains. Investors can use BUSD on the Ethereum chain, Binance Chain, and Binance Smart Chains.
Binance USD (BUSD) was created to be a safe investment for cryptocurrency investors looking to invest in a low-volatility stake. This cryptocurrency is pegged at the value of the US Dollar. The New York State Department of Financial Services regulates Paxos, the creators of this currency.
USD is a fiat-backed stablecoin backed by Paxos instead of a government. As a result, Paxos holds the equivalent of the total amount of BUSD in US dollars in its financial reserves. BUSD is a stablecoin that keeps pace with the price of the United States dollar.
When the price of the dollar rises or falls, the price of BUSD fluctuates as well. Paxos issues monthly audits to verify collateralization.
1. BUSD is regulated
2. Fiat-backed stablecoin backed by a reserve
3. 1:1 ratio price fluctuates with US Dollar
4. Operates on multiple blockchains
Paxos and Binance created Binance USD.
Binance USD (BUSD) was launched in September 2019 as a partnership between Paxos and Binance.
They first issued BUSD on the Ethereum blockchain as ERC-20 tokens. Binance USD is one of only three cryptocurrency tokens currently approved by Wall Street regulators. The New York-based financial company Paxos issues BUSD tokens.
Paxos collateralize BUSD tokens by holding equivalent dollar amounts in regulated US bank accounts. Paxos is also responsible for creating and burning BUSD tokens.
Paxos and Binance designed BUSD to be a low-volatility investment for crypto traders seeking highly liquid investments. Investors can easily convert their BUSD investment into fiat-backed currency during times of volatility.
Cryptocurrency experts recommend taking security measures like using two-factor authorization (2FA) to manage online Binance USD accounts and wallets. Serious investors use Binance USD wallet software to store, protect, and manage investments. They do this by using public and private keys to store value.
We do not provide investment advice. Cryptocurrency traders looking to invest in Binance USD should do their research on the history and performance of BUSD and choose the best options that fit their investing style and budget.
It’s important for investors to consider how much they can afford to lose on investments with downturns before committing to any investment. The creators of Binance USD designed BUSD as a low-volatility asset for crypto traders seeking high liquidity. This stablecoin’s goal is to remain stable and as close to the value of one dollar as possible. While its performance appears stable, this can change at any time.
What are Candlesticks and How to Read Them
A candlestick is a type of price chart used in technical analysis to forecast the future price direction of stocks, commodities, and cryptocurrencies. Each candlestick is a graphical representation of a price movement for a specific period. Four different price points are displayed on each candlestick. They include open, high, low, and close.
Candlesticks are one of the oldest forms of technical analysis. According to historical records, candlestick charting can be traced back to Japanese rice merchants during the 18th century. Most financial historians agree that Munehisa Homma was responsible for popularizing candlestick charting.
Candlestick formations are based on a strict set of rules which are universally accepted among all traders and investors. Let’s review a few of the most basic candlestick formations and patterns.
A solid red candlestick is displayed if the opening price is above the closing price (Chart #7).
A hollow candlestick is displayed if the closing price is above the opening price (Chart #8).
Bullish Candlestick Patterns
Big White Candle – The market opens near the low and closes near the high (Chart #9).
Doji – The opening and closing price is virtually identical (Chart #10).
Hammer – A candlestick that consists of a small body near the daily high with a long lower tail (Chart #11).
Bearish Candlestick Patterns
Big Red Candle – The market opens near the high and closes near the low (Chart #12).
Inverted Hammer – A red or white candlestick within an upside-down hammer position (Chart #13).
Shooting Star – A red or white candlestick with a small body, a long upper shadow combined with little or no upper tail (Chart #14).
Brief Summary of Candlesticks
- A candlestick is a type of price chart used in technical analysis.
- Each candlestick represents price movement for a specific period of time.
- Four different price points are displayed on each candlestick.
- The price points include open, high, low, and close.
- Candlesticks are one of the oldest forms of technical analysis.
- Candlestick charting was first used by Japanese rice merchants during the 18th century.
- Munehisa Homma was responsible for popularizing candlestick charting.
- Candlestick formations are based on a strict set of rules.
- These rules are universally accepted among all traders and investors.
What Is an IEO?
An Initial Exchange Offering (IEO) is a type of token sale administered by a cryptocurrency exchange. The entire process is controlled and managed by the exchange on behalf of the crypto company. Both parties have a vested interest in the success of the IEO. Neither party receives a payout unless investors purchase the token through the participating exchange. Therefore, it’s not uncommon for the exchange and the token issuer to join forces to help with marketing, promotions, and advertising.
Before launching the IEO, the crypto exchange and token issuer sign an agreement outlining the payout structure. Typically, the token issuing company is required to pay a listing fee along with a percentage of tokens sold through the crypto exchange. The majority of IEO agreements stipulate that the new token must be listed on the exchange for a predetermined amount of time following the initial sale of the token.
Investors who participate in the IEO are required to open an account with the participating crypto exchange. Instead of sending money to the token issuer through a smart contract, the investor deposits funds into his/her crypto account. Funds are dispersed by the crypto exchange to the crypto company.
IEO Versus ICO
As you may recall from our ICO discussion, the first ICO was launched in 2013. However, the ICO explosion did not occur until 2017, followed by its peak in 2018. Without question, the chief complaint within the crypto community concerning ICOs was a large number of failures and outright scams. In fact, the failure rate approached 90% in 2018.
As we have discussed several times, the cryptocurrency community is incredibly innovative. This community is filled with some of the brightest minds in global finance. Not surprisingly, a small group of young men and women were quick to replace problematic ICOs with IEOs in early 2019. The first major crypto exchanges to join the IEO wave occurred in January 2019. IEO activity continues to flourish in 2020.
The main difference between IEO and ICO is the level of success. In a typical ICO, the crypto company received funding immediately upon issuance of the token. Investors had very little recourse once the tokens were dispersed. They were trapped in a vulnerable position. Sadly, many unscrupulous start-up firms basically disappeared upon receipt of the funds commonly known as a ‘rug pull’.
IEOs solve this problem by preventing the token issuer from receiving funds immediately upon the distribution of the tokens. As we discussed earlier, both parties work together to ensure the success of the project, which increases the likelihood of a rising token price.
Although IEOs have only been in existence for two years, the popularity of this new fund-raising method has increased substantially. The success rate of projects launched on IEO is much higher compared to ICOs. Most likely, this trend will continue.
IEO Regulatory Environment
As you may recall from our ICO discussion, crypto companies struggled to clear all of the regulatory hurdles to satisfy financial regulators. Unfortunately, IEO participants, are experiencing the same type of regulatory problems that plagued the ICO marketplace. This by and large means that regulators dissuade people from taking part in IEOs.
A positive to this is that IEOs are largely unregulated and don’t have to satisfy bureaucracy that can stifle innovative projects.
Financial regulators, particularly in the United States, claim that an initial exchange offering is similar to an initial coin offering, even though the token issuer is not directly involved in the sale of the token. An ongoing problem with regulation is whether or not any particular token counts as security and needs regulation, or whether they are utility tokens. Exchanges will typically avoid listing securities on an IEO as it means they have to submit to regulation.
To avoid the strict regulation requirements around securities, crypto exchanges may even opt not to offer tokens in countries like the United States where there is ambiguity about regulation. As long as the IEO is not soliciting in a particular country, registration is not required.
Due to the overwhelming success of IEOs, many of the world’s largest crypto exchanges are becoming heavily involved in IEOs by offering tokens on behalf of start-up companies. Most likely, this trend will continue.
Brief Summary of IEO
- An initial Exchange Offering is a token sale administered by a crypto exchange.
- The entire process is overseen by the crypto exchange.
- Neither party receives a payout unless investors purchase the token.
- The exchange and token issuer will often collaborate with marketing and advertising.
- Both parties sign an agreement outlining the payout structure of the IEO.
- The new token will be listed on the exchange for a predetermined time period.
- Participating IEO investors are required to open an account with the exchange.
- Investors pay for the token by depositing funds into their crypto account.
- IEOs have proven to be safer than ICOs.
- Many crypto exchanges are not participating in heavily regulated countries.
- IEOs have become very popular in the crypto universe.
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