Skip to main content

Cryptocurrency in Focus: TRON Buys Its Way Up

Pushing a new strategy in the crypto world, TRON relies on strong M&A strategy.

TRON is a controversial, yet influential, player in the crypto space. 

Led by the charismatic Justin Sun, TRON's Singapore-based network has initiated an aggressive strategy recently to acquire various infrastructural elements of the crypto space, allowing it to greatly expand in just about two years.

The group's first major acquisition was BitTorrent, a peer-to-peer file exchange protocol, snagged for $120 million in June 2018. That buy gave TRON the ability to offer the BTT token -- which could be used as an incentive for people to seed files on the BitTorrent network with hosts getting paid in the tokens. 

Next came the purchase of CoinPlay, a blockchain "DApp" -- or decentralized app -- store in March.

Then, just last month, Sun acknowledged, following increasing speculation, that he was part of a group of investors seeking to acquire the Poloniex exchange from Circle. Since Sun took part in the acquisition of Poloniex, it has made several pro-TRON moves. Poloniex, for example, "acquired" the largest decentralized exchange on the TRON network, TRX Market, with the aim of rebranding it to “Poloni DEX.”

Even more recently, a Chinese news site leaked that TRON could be set to acquire the blockchain network, Steemit. 

While this sort of M&A is normal among traditional businesses, these acquisitions are unusual in the crypto space. It's also an untested strategy in the way that public networks can participate in these efforts and integrate new entities into their ecosystems. The buys have, however, placed the burgeoning strategy of Sun and his network back into the spotlight. A place they have shown to be quite comfortable. 

At its core, TRON is a delegated proof of stake (dPOS) network. The TRON blockchain works on top of the TRON virtual machine (TVM) which is analogous to the Ethereum Virtual Machine (EVM).Founded in just 2017, it now claims a throughput of 2,000 transactions per second and aims to be a fast, scalable, and responsive smart contract platform, as it continues to gobble up other projects.

Scroll to Continue

TheStreet Recommends

Acquiring Strong Numbers

FCAS is up 5-points (0.6%)

Developer Behavior is up 26-points (3.18%)

User Activity is down 19-points (-2.17%)

Market Maturity is down 11-points (-1.36%)

TRX health remains strong, up 5 points over the last 30 days despite a recent downturn in User Activity metrics. Price spiked in late October following news that Samsung would offer support for the project in its DApp store, but has retreated gradually over the last two months.

TRON Cryptocurrency

TRON Gobbles Way to the Top

TRON’s Marketing-Driven strategy is producing as many as 5,000 new accounts everyday according to TronScan. Total accounts on the network now exceed 4 million, and the development efforts needed to support this growth are massive. Overall FCAS is up over the last 30 days, driven by these Developer Behavior metrics.

As for its Growth by Acquisition strategy, this could bolster network growth over the long-run as the team works to create a cohesive ecosystem from the currently disparate parts. Ultimately, it is too early to map the direction of TRON and its headline grabbing founder, but the train is gaining momentum. 

The FCAS Tracker provides institutional and sophisticated retail investors a top-down approach to tracking 500+ cryptocurrencies fundamentals. FCAS Tracker is currently free to a select group of new users as we continue to develop the product. Visit us here to gain access to Flipside Analytics.