On March 31st Tron (TRX) is scheduled to migrate from being an Ethereum ERC-20 token to a fully fledged cryptocurrency running on its own blockchain. Much more importantly, as soon as Tron does migrate to its own testnet, world peace will apparently ensue. According to Tron enthusiasts, after all, TRX is capable of absolutely everything.
In short, there is literally nothing which Tron can’t can’t do. There is just one problem. Namely, that there is a lot of evidence to suggest that Tron is a scam.
Criticism of Tron as a viable cryptocurrency stems from two key points. First, the original Tron whitepaper was proven to be plagiarized from existing IPFS and Filecoin whitepapers. Then in early January, it was revealed that a single TRX wallet had sold 6 billion TRX coins in return for Ethereum, raising hundreds of millions of dollars in ETH in the process.
Needless to say, just one of the aforementioned problems would usually be enough to send investors fleeing from an ICO sale. What is quite terrifying about Tron, however, is the fact that many TRX commentators lobby in direct support of the cryptocurrency no matter what. - Hence why one Youtube commentator recently came to Tron’s defense by saying: “I personally would be concerned if their whitepaper wasn't plagiarized considering that it's common practice over there.” - (Meaning China).
Of course, with TRX being just days away from moving over to its own testnet, whether or not Tron is a scam isn’t really worth debating. Soon the matter will be decided once and for all. What many people don’t seem to appreciate, though, is just how severely a failure of Tron to live up to expectations might impact Ethereum.
Fewer than 20% of ICOs launched on Ethereum in 2017, resulted in the projects which they pertained to coming to fruition. Much more importantly, similar consumer hype (despite glaring evidence that the project should be avoided), was what led regulators to serve cease and desist notices against Bitconnect in late 2017.
Put simply, if Tron does prove to be a scam, it will erode confidence in ICOs overall. This and provide support for tougher regulation of cryptocurrencies like Ethereum. The only question, in this case, is will Tron change the world on March 31st? Moreover, if not, what will be the ramifications be on the wider cryptocurrency market?