Author: Ammar Mukhtar

Tron (TRX) was founded by Justin Sun back in 2017. Tron is a blockchain OS that claims to have 2000 transactions per second in their network capacity. TRX is best described as a decentralized platform focused on content sharing and entertainment. The 45% of TRX token supply went to the founder while 55% was distributed to investors.

According to coinmarketcap Tron is being traded at the rate of $0.08434 at the moment, with a decrease of 1.37% in the last 24 hours.

Tron is being ranked at #26 with a total volume of $1,186,766,780. The coin with its progress and low value is being getting more attention recently.

Let’s dive into if it’s a good point to buy this coin or not

Technical Analysis

The market of TRX is visibly in a bullish trend, the market was previously in a downtrend for few months making lower lows and lower highs, breaking structures to the downside, but recently on5august 2021, the market broke the structure to upside putting the turned bullish.

Market from $0.09346 reacted from a rejection zone and is likely to do a correction. This is more likely to be called a pole flag pattern, giving a sense for the market to push up momentously as soon as it breaks the correction trendline. The correction may occur all the way till $0.07494 to $0.07014, and if the market seems to be holding and respecting the zones, a push to the upside is expected.

Indicators

Now an additional confluence to get for the correction to be over is to look at RSI or MACD divergence, as divergence shows a loss in momentum, which will make sense.

Diving into its potential for the long run can be affected by the partners as well. The ones with them are quite influential, including, Samsung, bit torrent, blockchain and opera. The Ethreum high transactions are driving some users and investors to TRX.

It should be taken into account that not only TRX but all the other coins are also following the BTC pattern. Before initiating a position in the market the trend of BTC should be analyzed and if it is in the favor we can expect an additional confluence in the market. Currently, BTC is swinging between $46.6k and $47.4k. In the case where the Btc breaks this resistance, we can expect a fall in TRX as well. In the case the Btc goes up we can also expect an increase in TRX as long as Btc.d remains constant or doesn’t increase fast.

The Crypto market is decentralized, there is not a single governing body that decides the rules. As a result, the market is more prone to manipulations.

Manipulation can occur in different senses. Recently in the stock market, GameStop was manipulated through the help of social media such as Reddit and Twitter. After it happened the price surged about 1500%. Not everyone was happy with this development as people with short positions lost a lot of money in the market.

Similar experiences has been seen after Elon tweets regarding certain coins that rallied to give a huge amount of returns to the investors. Dogecoin rallied and achieved a price of almost $0.7 before the crash. Many other coins have showed similar reactions to certain actions made by popular and influential people.

Rug Pulls and DEXs

A lot of coins have been subjected to manipulation with the help of FUDs, news, influential people. Coins have been rug pulled. The act of rug pulling is the one in which developers and certain people with a huge amount of those assets sale every asset they have in the market eventually dropping the price down to the bottom. They abandon the project and run away with the investors’ funds.

They create its hype around different social media accounts such as Telegram, Twitter or Reddit. This helps to get as many people as they can to invest in their scheme. Once a number of people have invested in it, the developers withdraw everything from the liquidity pool eventually driving the price of the coin back to zero.

This kind of behavior has been observed a lot in DEXs where people list new tokens and then pair it with leading currencies like Ethereum.

Rug pulls are very common on such decentralized exchanges where the tokens are listed without audit and investigations as compared to centralized exchanges which thoroughly look into the project.

Another possible rug pull is a coin that has its price doing massive numbers in a few hours or even minutes. For example, a rug pull coin can move from 0 to 50X within a single day. When retailers see this they FOMO in and as a result are caught in the damage when the rug pull happens

Bitcoin (BTC) mining is just the same as discovering a new physical source. You need money, energy, and resources to mine elements like gold. Same is the case with Bitcoin. Where heavy machinery is used to discover precious metals, Bitcoin mining requires computation and power to discover new blocks.

Bitcoin mining difficulty is the measure of the amount of resources used to discover and mine. The difficulty has increased by 13% after the China crackdown.

How did China Crackdown affect Bitcoin Mining?

Just as in real life when there are more machinery and more resources put into mining the more metals are discovered. Bitcoin algorithm works the same way. When more miners are available and operating on the network, the more easy it is to mine new blocks. As the miners become less, less amount of blocks are discovered. Bitcoin has a self-stabilizing mechanism. The algorithm works in such a way that a block is to be discovered every 10 minutes. To compensate for the less amount of miners the blockchain automatically adjusts itself.  This algorithm was built in the blockchain when the network was launched around 10 years ago.

The blockchain’s mining difficulty increased by 13.2% at block 697,536, according to several mining sites.  The rate is adjusted after every 2 weeks and is an important factor in determining the miner’s profit margin.

What Future does Mining holds?

Even though the difficulty has increased the experts say that it is highly profitable.

“Bitcoin mining has never been more profitable” said Dave Perrill, CEO at crypto mining colocation company Compute North. “Look at the percentage of price run that Bitcoin had over the last 12 months and look at the hashrate percentage increase, and it’s nowhere near in line.”

During the crash of the market, the price of mining rigs dropped down but now as Bitcoin has rallied towards the upside, the prices of the rigs have also increased again, showing that the miners are still interested in the network and in the long run they still think that it will pay off.

At the time of writing, BTC is currently being traded at a price of $47,126 with a decrease of 0.79% in the last 24 hours.

Last week, Liquid an exchange platform was hacked and funds nearing $90M dollars were stolen. Elliptic is a blockchain analytics company. According to the nearly $97M funds have been hacked. Of the total hacked amount $45M in tokens were being converted to ETH through de-fi platforms like UniSwap, SushiSwap.

“This enables the hacker to avoid having these assets frozen — as is possible with many Ethereum tokens” Elliptic said in a blog post.

The hacker took ETH, BTC, XRP, TRX, and EWT and transferred it to separate wallets. According to the official data the exchange was targeted at MPC (multiparty computation), an advance cryptography technique where the keys generated by different parties can’t be seen by one another. A technique that many banks and companies use to keep its funds secure. After the attack, the assets were moved into cold wallets to prevent any further damage to the exchange and its users.

FTX is an exchange that was founded back in 2017 by Sam Bankman, the platform is one of the biggest exchange platforms and allows innovative products including industry-first derivatives, options, volatility products, and leveraged tokens.  It has now been revealed that Liquid has taken a loan of $120M from FTX to safeguard the customers’ assets.

Statements from Liquid and FTX

“The financing will also improve Liquid’s balance sheet and, in turn, its key regulatory metrics, which further corroborates its ongoing licensing opportunities in the key jurisdictions of Japan and Singapore” Liquid Global Said.

“This opportunity with Liquid allows both organizations to strengthen and reinforce the belief that regulation in crypto and knowing your customer is an important part of the future of our industry” Bankman-Fried said.

Recent Hacks

Liquid Exchange was also hacked last November. The hacker gained access to the company’s records and then later exploited the network.

It is a second major heist to take place in a small time span. PolyNetwork a de-fi platform was also hacked and nearly $600M were taken by the hacker. Though in an unusual turn of events, the hacker returned the stolen funds to the company.