Tron (TRX) climbed 6% leading into Wednesday evening as the cryptocurrency market sprung up from another overnight dip. TRX had flirted with yet another 2018 low for much of Wednesday morning, yet CEO and co-founder Justin Sun confirmed his bullishness in the wake of the quiet jab thrown at him by Vitalik Buterin late last night.
Contrary to Buterin’s assertion that the cryptocurrency market would no longer be witness to the kind of 1000x growth that we witnessed towards the end of 2017, Justin Sun believes the exact opposite.
Sun Strikes Back
The Tron CEO took to Twitter to defend himself after Buterin suggested that the hype created by popular figures like Justin Sun was less than beneficial. Buterin’s original statement read:
“Me: obviously, let’s be realistic, the entire world wealth is not going to turn into cryptocurrencies…
Media: VITALIK IS A PESSIMIST!!!!!1!!1!
Guys, if you spin things this way you’re *incentivizing* people to act more like @justinsuntron.”
Justin Sun responded less than two hours later, telling his 326K followers:
“I do believe the entire world wealth will turn into cryptocurrencies like blackhole and grow much bigger in the future. Cryptocurrency will hit 10 trillion USD market cap before @Apple and @amazon do. We will see. Time will tell. #TRON #TRX $TRX.”
The assertion that the cryptocurrency market cap will reach $10 trillion before Apple and Amazon is brash, bold, and just the kind of hype that we’ve come to expect from Justin Sun. His tweet may be slightly tongue in cheek (it’s difficult to tell), but that’s not to say he’s be wrong, after all, who knows? But with Apple recently becoming the first U.S publicly traded company to hit a valuation of $1 trillion, and Amazon forever expanding into new markets, it may seem unlikely at this point.
But… Is Hype Effective?
Well, the answer is clearly ‘yes’ – but with a caveat. There’s such a thing as selling yourself too much. As a unique example, look at how the professional wrestling business oversold itself in the late nineties, and has now been forced to pay the price with poor television numbers and apathetic fans.
Speaking of oversold, take a look at the crypto market itself, and Ethereum in particular. Tron also falls into that bracket, and has shipped 81% of its value since May, just four months ago.
As the morning’s dip began to rebound on Wednesday afternoon, TRX traded up against the dollar to the tune of 6% – rising from a coin price of $0.017237 to $0.018275.
The jump was in line with the majority of the market, with only a handful of altcoins entering into double-digits. Bitcoin dominance has continued to climb, and crossed the 57.1% mark late on Wednesday afternoon. Surprisingly, BTC’s dominance hasn’t had much of a knock-on effect on TRX, with the majority of Wednesday’s trades coming against ETH and USDT – at 30% and 36% of the daily total respectively.