By destroying an additional 182 million TRX ERC-201 tokens, Justin Sun is confirming his distaste of ERC-20 tokens. Back in November 2018 when he announced on Twitter that the platform has burnt $800 million worth of ERC-20 tokens, he let the whole know of his sentiment although Ethereum was where Tron steadied before launching their own blockchain, virtual machine and even tokens—TRC-10 and 20 tokens.
Similarities are striking but nonetheless, Tron will go on with the coin burns as they bid to tame inflation while rewarding token holders by ensuring reasonable distribution of tokens. However, there is no relation between these old ERC-20 tokens and current TRX coins because Tron now operates from their own platform complete with a functional and Ethereum compatible virtual machine.
It is simply Tron detaching themselves from Ethereum as some exchanges that support TRX are yet to fully migrate months after Tron independence.
Meanwhile the team at Tron are working hard towards accomplishing their goals. According to Marcus Zhao—the head of Protocol, the engineering team has expanded from two to 40 in nine short months. For efficiency, the team did split into three teams to satisfactorily cover algorithm, virtual machine and smart contracting departments.
Tron (TRX) Price Analysis
At prevailing rates, TRX is up 2.5 percent in the last day cementing our previous bull preview. If anything, this was expected if not inevitable after TRX prices bottled last year. The draw-down was severe that TRX tumbled more than 90 percent from 2017-8 peaks. Even propping announcements and “secrets” from Justin Sun couldn’t prevent liquidation. However, at spot prices, bulls are buoyed and price expansion depends on how bulls react at 2.5 cents—a resistance level and a buy trigger line.
As reiterated in previous mentions, any break out above 2.5 cents shall lay the foundation for 4 cents. Besides, it shall confirm late Dec 2018 bulls when prices bottomed from 1.2 cents. Ideally, it would be perfect if traders wait for breakouts but still there is opportunity for aggressive traders to buy at spot prices with stops at Dec 28 lows at 1.8 cents.
On the flip side, losses below this support level could see TRX prices plummet back to 1.2 cents as bears step in crashing bulls.
From candlestick arrangement, our TRX/USD trade plan is as follows:
Buy: Spot, 2.5 Cents
Stop: 1.8 Cents
Target: 4 Cents
All Charts Courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.