Tron (TRX): A few months ago, Verge (XVG) was one of the most promising projects in the market. That was until it announced a huge secret partnership that turned out to be a flop. People were expecting something bigger than a partnership with a porn site. That’s why after that announcement was made, the price of Verge dropped, and it has never recovered since that time. Of course, the hacks that followed didn’t make matters easier for Verge.
However, one needs to understand that Verge’s price did not drop because it partnered with a porn site, it dropped because they built up so much hype around this partnership, that when it didn’t meet investor expectations, investors withdrew from the project. Had they kept quiet about it and announced it as a surprise, the value of Verge could actually have rose. That’s because PornHub is actually a huge site, it’s among the top 20 most active websites. The problem was the hype, and people were expecting something bigger, and more ethically acceptable.
So how does all this connect to Tron (TRX)? Well, two weeks ago Justin Sun announced that they would be unveiling a secret project on July 30th. As this date approaches, there will be lots of hype around Tron, and its price could actually begin to rally. Investors are expecting a huge project, something like a partnership with Alibaba or something of that magnitude. However, in the event that the said project is not as significant, it could hurt Tron (TRX)’s price significantly.
That’s factoring in the fact that Tron’s price is already severely battered by the crypto bear run, and has not rallied even in the last 2 weeks, when most cryptos have recovered. Its price decline after a number of major announcements so far, could be an indicator that investors are getting numb to the announcements. That’s why the last thing TRX needs at this point is to overhype a non-starter project. It would be best to work on it quietly, then make the announcement a surprise. This element of surprise could actually uplift its price, as compared to creating expectation in investors’ minds.
Markets to a large extent are driven by psychological factors. Fundamentals create the long-term value blue-print, but in between, it is investor emotions that drive the markets. If Tron (TRX) can capitalize on this simple market logic, the price of Tron (TRX) will stabilize fast. The team could work on projects quietly and then make them known, when they are about to hit the market. For context purposes, imagine if Tron were to secretly enter into a partnership with a company like Alibaba, then make the announcement on D-Day. It would lead to an unprecedented moonshot for Tron.
This is not to say that the long-term fundamentals of Tron (TRX) are not good. It’s actually one of the highest potential blockchains in the market. Its features give it a huge potential for adoption by developers looking to create Dapps for different industries, and that’s huge.