TRON Founder Justin Sun and TRX Coin Social Media Marketing: Double Edged Sword for Investors
Justin Sun, TRON founder, is among the top 3 social media active crypto figures as of press date. The TRX founder has tweeted to the advantage of this native token a couple of times. In fact, sometimes the impact has been significant enough to counter a bearish market trend even just for a day or two.
However, the competitive approach used by Justin in some of his tweets has made a few commenters question the true fundamental value of TRON’s project. Most are the times that the announcement effect only boosts TRX for a couple days but the comments might negatively impact other projects like Ethereum that have been victim of Justin’s discredit approach.
An argument that recently arose from Justin’s marketing approach is the aspect of centralization of the TRX platform simply because of its founder’s effect on price. A few days ago, Justin took an announcement about a possible partnership with a top company in the Fin Tech arena to his twitter account.
In the tweet, Mr. Sun told the TRX twitter community to make wild guesses on this probable partner; such moves have often caused excitement like the speculated XVG Pornhub partnership back in Q2. In the tweet posted on October 12th;
“Finally, First time to partner with tens of billions USD valuation industry giant. Guess the name #TRON #TRX $TRX”
The reaction was a positive price movement although the pips moved could not recover the bearish price action that had preceded the announcement. One of the TRX twitter followers criticized Justin’s frequent tweeting;
“justin you REALLY need someone to handle your communications and marketing strategy. you should do some research on the effects of announcing announcements. seriously, this is the big leagues for you now. act like you should be there.”
During TRON’s upgrade to Odyssey 3.1, Justin had tweeted to discredit the performance & affordability of EOS & Ethereum, both are DApp facilitating blockchain platforms placing them as TRON’s main competition.
“Based on community consensus, #TRON will be upgrading to Odyssey 3.1 at 8pm SGT. The TRON Committee function & TVM will go live, marking the start of the Smart Contract Era. TRON will be 200x faster vs. ETH, 100x cheaper vs. EOS. dApp developers & users, this one is for you! $TRX”
However, this news did not prevent the TRX altcoin from further sliding down as it had been on a bearish trend between the 9th & 10th of October.
A twitter account user by the name [email protected]_manish expressed a skeptical attitude towards TRX attributing it to Justin’s tweet;
“Give my money back I lost because of tron you are fooling us , price is down and you making daily new twitter updates.”
The Tron Virtual Machine launch was another area the founder & the team capitalized with their social media marketing hype. This milestone market the deployment of TRC-20 based tokens, a concept similar to that of Ethereum’s infrastructure. According to the TRON twitter handle on October 7th;
“#TRON(#TRX) Two days away
• TVM activated
Allowing deployment & migration of DApps from existing #Blockchain networks.(#ETH, #EOS in the works)
• TRC-20 token deployment
TRC-20 is the technical standard used for smart contracts on the Blockchain for Implementing tokens”
This resulted to a small positive price move by TRX although it was only for a moment. The altcoin had reverted back to a bearish trend in barely a week. Similarly, this attracted online critics with one of them terming TRON as a joke!
“Tron is a joke, confusing people with trc -20”
Towards the end of Q3, Justin market TRON’s enahnced performance on twitter. While doing so, he compared the platform’s active user ship with that of Ethereum & EOS. The tweet made 4 categories of comparison;
“1. 411,032 #TRON accounts, 20% more than #EOS, 13 times higher than that of #ETH.
2. 440,135 peak number of single-day transaction volume, 49 times higher than #ETH.
3. 146,041 average daily transaction volume, 29 times higher than that of #ETH.
4. Physical decentralization.”
As expected, this also received a backlash from one of the project’s long-time enthusiast who tweeted;
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“I know no one in this thread really cares but I’ve been a long time supporter of Tron and slowly but surely losing faith in this coin. It’s the same information over and over. Airdrop, bragging and useless information. I’ll give it to the end of this year though.”
A final highlight of Justin’s tweets is a scalability brag tweet where he discouraged DApp creators from leveraging other platforms. The founder took the opportunity to market TRON’s blockchain potential;
“Yes! Please stop deploying d-apps to Ethereum and migrate to #TRON network immediately! We are 100x faster than #ETH and fully compatible with #ethereum. We 100% guarantee better user experience! #TRX $TRX”