which cryptocurrency is the most important if you answered Bitcoin guess again believe it or not but the most important crypto is arguably Tron and this is because most of usd's Supply circulates on Tron and in turn most cryptos including BTC trade mostly against usdt and this makes Tron a critical piece of crypto infrastructure and its TRX token has recently been pumping because of the fear Tron has been generated and that's why today we're going to explain what Tron is bring you up to speed on what it's been up to see where the TRX could keep
going up only and what the future holds for this relatively controversial crypto project stay tuned I'll start by saying that nothing in this video is financial advice it's purely educational content intended to inform you about Tron and I'll also note that at the time of making this video no body on Team coin Bureau holds Tron in their personal portfolio and this video is not sponsored in any way so rest assured that we will be as objective as possible in our analysis that said there are some aspects of Tron which we won't be discussing today mainly
just because of time uh these include Howard's founder Justin's son used to work for ripple the role that Justin played in shaping the early crypto industry and the ties That Tron appears to have to powerful individuals and instit institions if you want to go down that rabbit hole well then become a member of the coin Bureau Club our members get weekly reviews of promising small cap cryptos which they vote on they get daily crypto Market updates from our researchers as well as realtime altcoin ala in our members Discord where you can ask us any questions
you want as a cherry on top you get to see which cryptos we hold and which ones we're personally accumulating the link to become a member of the coin Bureau Club will be in the description now back to Tron it was founded in 2017 by Justin Sun a Forbes 30 under 30 on troper who was mentored by Jack Mah the famous co-founder of Chinese Tech Giant Alibaba Tron raised around $70 million across two icos in 2017 and its main net launched in 2018 interestingly a tron's initial use case was crypto gambling however this changed in
2019 when Tron partnered with usdt stable coin issuer tether just basically bet the future of Tron on its partnership with tether as noted earlier that bet it paid off big time because more than half of the usdt in circulation today exists on Tron and I'll remind you that usdt is essentially the backbone of the entire crypto market and FYI tethers importance is why it's unlikely to fail much to the shagrin of these so-called truthers now what made Tron appealing to tether was presumably its scalability under the hood Tron uses a delegated proof of state blockchain
that can process up to 10,000 transactions per second and this doesn't sound like much today but back in 2018 that was very fast and Tron actually worked too I'll quickly note that some sources claim tron's Max TPS is actually closer to 2,500 but that was and is still fast compared to most cryptos as you might have guessed trans scalability comes at the expense of decentralization a Tron is very centralized with just 27 super Representatives which are effectively validators Once Upon a Time this centralization contributed to tron's controversy today uh most crypto are equally if not
more centralized another contributor to the controversy around Tron was the fact that it had allegedly copied other crypto projects in its white paper specifically filecoin and ethereum uh what's hilarious is that Justin admitted in a recent podcast that he wished he had copied ethereum 100% instead of just 95% this is even funnier when you realize that most of the ethereum killers from the previous cycle were practically perfect copies of ethereum or rather its evm in case you're wondering Justin wishing he had copied ethereum 100% was because it would have made Tron more interoperable with ethereum
the biggest contributor to the controversy around round Tron however appears to be Justin himself per his own admission Justin initially had a large ego and some would say that's understandable given his past success it's even more understandable given how Justin appears to be incredibly wealthy this seems to be partially because he's been holding lots of BTC since it was $1 and partially because he allegedly holds a substantial percentage of trx's supply and this is because around 35% of trx's initial Supply went to the Tron Foundation which Justin controlled and some sources note that another 10%
went to pwow a Chinese company that Justin also controlled I'll quickly note that Tron became a DA in 2021 but if the allegations are true then Justin might still have enough TRX to influence the dial anyways whereas scalability was likely the sulling point for crypto companies like tether cost was and continues to be the selling point for crypto users without getting too technical uh Tron wallets are granted a certain number of free transactions every 24 hours and even the paid transaction fees are very very low the crazy thing is that Tron has seen so much
adoption that it has generated over $1.6 billion in fee Revenue over the last year alone and because all these fees on Tron are technically burned trx's supply has declined by by around 3 billion over the last year and it's declined by almost 13 billion since 2022 to put things into perspective trx's initial Supply was 100 billion and it has an inflation rate of roughly 5% inflation is how validators get rewarded since fees are burned what this means is that Tron is generating enough Revenue to offset its inflation and then some the result has been a
pump in the price of TRX this is because of simple Supply and demand a less Supply with the same or more demand causes prices to rise and that's exactly what's been happening to TRX not only that but this trend is accelerating and not just because of the mean coin hype on Tron but Tron faces some challenges that could change this trend by the way if you enjoying this video so far be sure to smash that like button to let us know and subscribe to the channel and ping the notification Bell as well so you don't
miss the next one now given that we first covered for our coin Bureau club members last September we reckon it's appropriate to pick up where we left off shortly after that Tron review went live tether mined 1 billion usdt on Tron it minted another billion in December 2023 and minted another billion over the summer a chances are you've heard of these big tether prints before and you probably think they're causing crypto to pump but contrary to popular belief this is not the case tether will mint large amounts of USD in response to demand for usdt
and this demand typically comes from Trading specifically leveraged trading now think about it when you try and buy some mcoin or altcoin on an exchange what do you buy first that's right usdt and if you've watched our video about the importance of stable coin market caps though you'll know that trading is no longer the only demand driver for usdt to the CEO Paulo uino revealed yed in an interview that 40% of usdt holders are using the stable coin as offshore dollar Holdings as a sort of a USD bank account not surprisingly the existing Financial Elite
have taken this bullish fact and turned it into something bearish for example in November last year Reuters reported that terrorists in the Middle East preferred usdt on Tron to BTC what they didn't report on though is that they prefer using physical us even more just don't ask how they got all that American Cash anyway the fud around terrorists using usdt on Tron made it all the way up to the US government with politicians pressuring Regulators to go after tether at the same time activist groups started going after usdc issuer Circle alleging that its stable coin
was being used for similar stuff on Tron the connection between Circle and Tron is another rabbit hole and we don't have time to explore that here here but uh you know where to find it now the result was that Circle stopped mint in usdc on Tron in February this year and what's scary is that tether reportedly didn't provide an answer when asked if it was considering doing the same tether subsequently launched a tool to help migrate usdt to other chains in case of an emergency before you fall for the fud though you should know that
the attitudes towards both tether and Tron seem to have changed in the case of tether this seems to have happened after it started working closely with us authorities late last year and note that something similar happened with binance more about that in the description I digress now as for Tron attitudes towards it could start changing now that it has partnered with tether and a crypto analytics firm called trm labs to help fight crypto crime of course tether's new connections to us authorities mean they're probably involved and trm Labs itself works with US government agencies in
any case in February this year Tron announced that it would be building a Bitcoin layer too uh for context Justin has close connections to the early crypto industry it seems he made most of his early gains by selling BTC mined by Chinese Bitcoin miners to exchanges in China and the United States we'll come back to tron's bitcoin layer 2 a bit later now in March this year binance announced that it would be delisting certain TD stable coin Pairs and and this also requires a bit of context in short the company behind TD reportedly has connections
to Justin and for a while it looked like binance was going to use TUSD after its B USD stable coin was phased out somewhere along the way though binance seems to have picked a different stable coin as the replacement specifically FD USD it's not clear why this happened but uh feel free to guess in the comments now in April this year Tron finally got some good news uh for reference Tron and Justin were sued by the SEC last March and in April this year Tron and Justin argued that the SEC overstepped given that neither of
them are based in the US in August the judge sided with Tron and Justin potentially set in the stage for the case to be thrown out which would certainly be bullish for TRX and the entire Tron ecosystem come to think of it the ruling could set the stage for TRX to be listed on us exchanges particularly if the judge makes it clear that TRX is not a security recall something similar happened with xrp recently now in July this year things started looking even more bullish for Tron for starters Justin offered to buy the BTC that
the German government was dumping on the open market and for those unaware Justin has made similar offers to make these big Acquisitions in the past yet another Rabbit Hole Justin also announced that Tron was working on a gasless stable coin a removing the need for users to acquire TRX to pay for fees and shortly thereafter Tron surpassed ethereum by daily fee Revenue seemingly for the first time and Tron then surpassed ethereum's 90-day fee Revenue in August a sign of tron's increas in adoption some would say it's more of a sign of low adoption on ethereum
but that's a topic for another time ironically enough Tron got some fight of its own not long after and that's was 12,000 BTC back in tron's USD stable coin were removed from its reserves and for those unfamiliar Tron has a decentralized stable coin that's analogous to Terra us the difference was that it had even more BTC as collateral but as I just mentioned that BTC was removed in August and it was a controversial move because it was reportedly done without approval from the Tron da and this led to suspicions that Justin had single hand ly
removed the BTC from usd's reserves all Justin said was that it's quote defi 101 and I'll quickly note that Justin is known to be one of the biggest defi whales on ethereum now in case the Optics weren't bad enough Justin started daring Tron haters to sell him their son the token for sun swap tron's largest decentralized exchange and this was reminiscent of similar dares made by other controversial crypto Founders before their projects collapsed thankfully not the case for Tron on the contrary sunap launched a mem coin generator called Sun pump which managed to flip Solana's
pump. fund meme coin generator by fees in less than 2 weeks after launching over 18,000 meme coins were minted on sun pump during that period and it's safe to assume that it wasn't all Justin and this ties into the topic you've all been waiting for and that's trx's price action and of course its potential now as you can see TRX has literally been climbing since March 2020 in case you missed it that's because tron's adoption has been increasing due to its stable coin dominance which has triggered billions of TRX burns from a fundamental perspective TRX
has an insanely good supply and demand equation on the supply side TRX is deflationary to the tune of around 3% per year and this is the result of the total number of transactions on TR moving gradually up and to the right Trend that hasn't stopped since March 2020 logically this suggests that the reason for TR adoption is not contingent on the crypto market and this is further evidenced by the fact that the total value locked in tron's defi protocols has been flat for the last 3 years it has only risen slightly because of trx's price
appreciation the more you know in case you forgot it seems tron's adoption is coming from non- crypto use cases related to usdt such as payments and savings and this makes perfect sense when you consider that many foreign currencies have gotten absolutely wrecked by inflation billions are looking for a safe haven and usdt is one of them notably Justin believes that this crypto bull market will be different precisely for this reason crypto is achieving Mass adoption with things like stable coins and this not only sets the stage for TRX to continue going up only but also
sets the stage for other the stable coin Focus smart contract cryptos to follow suit from a purely technical perspective TRX looks like it could rally by as much as 70% in the short to medium term that's because it's close to breaking out of an enormous cup and handle pattern that goes all the way back to early 2021 what's fascinating though is that TRX didn't hit a new all-time high in late 2021 when most other crypto altcoins did regardless it's on the brink of doing that now and once it does it's going to be very hard
to get a sense of just how high TRX could go and that's because once a crypto breaks above its all-time high there's no reference point you can use to measure its next move trx's cup and handle pattern not withstanding besides having a relatively bad reputation in the industry and Regulatory scrutiny the only thing that could limit trx's growth is its massive market cap which currently stands at around $13 billion as most of you all know the larger the market cap the harder it is to move a crypto's price in percentage terms in tron's case it's
already in the top 10 by market cap meaning it's going to take tens of billions of dollars to push its price up by even a 5x and take a second to consider that TRX has already gone up by 15 times since March 2020 and most of the gains in percentage terms have probably already happened in our view the only way that TRX could pull the 5x would be for it to list on us exchanges which you'll remember Could Happen depending on the outcome of the sec's case against Tron and Justin and this would unlock the
kind of capital required for TRX to maximize its full price potential another way you can maximize trx's price potential is to use the coin Bureau deals page it's got trading fee discounts of up to 70% and sign up bonuses of of get this $100,000 you see these deals are only a ailable to the coin Bureau viewers and they won't be around for long so be sure to take advantage of them while you still can using the link in the description now whether TRX can pull another 5x or more ultimately depends on its upcoming milestones and
if you've been paying attention you'll know that we've already mentioned a few already and one of them is the launch of the layer 2 for Bitcoin which seems to be the core focus of tron's road map in 2024 the roll out consists of three stages the first stage will involve introducing tokens on Tron to the Bitcoin blockchain using unspecified quote break through blockchain technology and Justin revealed in an interview that the focus in this stage will be to get usdt on bitcoin which makes sense as Bitcoins layer 2os will require stable coins the second stage
of tron's Bitcoin layer 2 will involve partnering with other Bitcoin layer twos an article by decrypt seems to imply that the focus of this stage will be to encourage the adoption of tron's restak Bitcoin among Bitcoin layer 2s and this could be the reason why 12K BTC was removed from USD reserves whatever the case the third stage of tron's Bitcoin layer 2 will involve launching the layer 2 itself and this layer two will somehow integrate with the bit torrent chain which is yet another Rabbit Hole related to Tron on that note it seems that Tron
has another unofficial road map that was revealed by Justin at the Korea blockchain week conference last year he noted that Tron would continue to focus on real world assets that leverage stable coins and start to explore other use cases in the nft and game fine issues Justin reiterated this in an interview he did with us last September where he made it clear that tron's Focus continues to be stable coin related adoption in more recent interviews though it seems that Tron has been more focused on Meme coins with Justin revealing That Celebrity meme coins are coming
soon and this of course brings me to the challenges that we foresee for Tron the first challenge well that's the big one and it's regulation make no mistake the regulatory scrutiny around usd's uses on Tron is objectively unjustified the problem is that Tron could keyword could be centralized enough to be coerced this fundamentally depends on how much control Justin has over TR either directly via his TRX Holdings or indirectly via say funding development on its blockchain if Justin can control Tron then authorities could theoretically coers him to comply with the demands for onchain censorship fortunately
this isn't as big of a challenge as it was now that tether has started working with us authorities unfortunately if tron's adoption continues to grow because of usdt then Tron and Justin could face additional Reg pressure in the future that aren't as clearcut as fighting terrorism and this ties into the Second Challenge we foresee for Tron and that's competition if you watched our recent ton coin review you will know that it seems to be emerging as another smart contract cryptocurrency that's leveraging usdt for non- crypto use cases the difference is that it has more potential
for growth and that's because ton coin is integrated with telegram which based on some estimates already has over for 1 billion monthly active users with 1 billion usdt minted on ton coin since March it's possible that ton coin could grow large enough to challenge tron's dominance by the end of this bull market Tron also faces competition from other smart contract cryptocurrencies that are not so subtly positioning themselves for stable coin payments such as salana consider that PayPal launched its P USD stable coin on salana explicitly for crypto payments the third challenge we foresee for Tron
is its reputation namely within the crypto industry in case my earlier comments didn't make it clear enough we believe that most of the controversy around Tron is unjustified and this is because other crypto projects have done the same as Tron with minimal scrutiny again the difference is that Tron did all of these things when the crypto industry still cared about things like decentralization today all of these L held ideals have been thrown out the window in exchange for shortterm gains and yet everyone still seems to be hard on Tron for being successful in this regard
and some would say this has to do with Justin's Brash behavior and there's certainly some truth to that but it's also true that Justin has become humbler per his own admission in a way he's starting to shift towards crypto's ideals of decentralization even if only because it keeps him personally out of trouble but let's just say that there's a lot more work to be done on that front in some then Tron is a powerful crypto project that has gone surprisingly unnoticed despite its importance to the crypto industry and the gradual multi-year rise of its TRX
coin even though TRX has likely seen most of its gains in percentage terms it will continue growing in tandem with tron's adoption and right now it looks like tron's adoption is only going to continue growing that's all for today's video If you if you found it informative be sure to smash that like button to let us know and if you want to stay informed about promising crypto projects then subscribe to the channel and ping the notification Bell as well and if you want to help others learn about Tron well then consider sharing this video with
them as always thank you very much for watching and I'll see you in the next one this is Nick sign off [Music]
