Tron [TRX] Gains 9% as Justin Sun Launches an IEO Platfrom and DeFi Project

Justin Sun's Tweet Heats Up BitTorrent [BTT] Price With Over 17 Percent - Too Close to Enter Top 30

Tron [TRX] Gains 9% as Justin Sun Launches an IEO Platfrom and DeFi Project

Tron [TRX] gains 9% w.r.t. Bitcoins as its price of Tron benefit from the announcement of the launch of an IEO platform and a MakerDAO like DeFi system.

The 50-Day EMA (Exponential Moving Average) is acting as resistance to bulls around 190 sats. The price of TRX at 5: 00 hours UTC on 6th April 2020 is $0.0128.

tron launchpad
TRX/BTC 1-Day Chart on Binance (TradingView)

Poloniex’s Launchbase for IEOs

Poloniex exchange along with its leading investor and creator of Tron, Justin Sun announced the initiation of an IEO (Initial Exchange Offering) platform with the Poloniex Launchbase.

The Launchbase platform is similar to Binance’s ‘launchpad‘ which has been the leading platform for IEO launch, with 17 token launches since 2017 including the famed Matic Protocol. Like the Binance launchpad’s purchase are made available via Binance [BNB] Coin, Sun with Poloniex has designated Tron [TRX]. He tweeted,

$TRX will be the only eligible currency for purchases. Over the past 6 years, @Poloniex has helped hundreds of quality blockchain grow and develop their community

Tron Based MakerDAO-like DeFi Platform

Furthermore, he also announces its first IEO, JUST. It is labelled as a DeFi system, which involves staking of Tron [TRX] via “JUST’s CDP portal to generate USDJ, a stablecoin pegged to USD at a 1:1 ratio.” The crypto-token associated with the platform, JST, will be used to pay interest and maintenance fees of the project.

The CDP (collateralized debt position) component of JUST is identical to MarkerDao which uses Ehtereum as collateral to issue DAI, the 1:1 USD stablecoin. Essentially, replicating the idea of gold reserves (here Ethereum and Tron) being used to issue currency.

However, since cryptocurrenices are currently lacking the ideal store of value status, the long-term sustainability of these projects depends on the liquidity and success of the underlying collateral (in these cases ETH and Tron). Hence, there is considerable project risk involved with these platforms.

Furthermore, IEOs are being increasingly put under the scrutiny of being identical to ICO (Initial Coin Offering) which flooded the market in 2016-2017.

How do you think IEO platforms and stablecoin DeFi will perform in the long-term? Please share your views with us. 

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Tron [TRX] Gains 9% as Justin Sun Launches an IEO Platfrom and DeFi Project
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Tron [TRX] Gains 9% as Justin Sun Launches an IEO Platfrom and DeFi Project
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Tron [TRX] gains 9% w.r.t. Bitcoins as its price of Tron benefit from the announcement of the launch of an IEO platform and a MakerDAO like DeFi system. 
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Author: Nivesh Rustgi

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

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Nivesh Rustgi 1033 Articles

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

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