When it comes to marketing and getting the community excited for a new product launch, nobody is better at it than Justin Sun – Tron founder. In his latest PR spin in a bid to pump up his Tron token, Sun has created a partnership with Tether – the most popular USD pegged stablecoin – to bring it to the Tron network. Set to launch before the end of Q2 2019, the TRC-20 stablecoin will be the first of its kind on the Tron network and will help the network attract a wave of new dApp developers and projects.
Tether in Trouble
Over the past few months, allegations about Tether’s legitimacy have surfaced. Numerous reports suggested that Tether didn’t have enough USD in its account to cover all USDT in circulation, but other reports alleged that Tether had more than enough USD in its accounts. In October 2018, Tether was close to toppling as it became untethered from the USD, but it managed to pull itself back from the edge as Bloomberg investigated its bank accounts. Tether remains the most popular USD stablecoin available today, and this new partnership with Tron will only help it grow in terms of popularity and market cap.
Another Tron Style Money Grab?
Last month Justin Sun announced the BitTorrent ICO and the crypto community lambasted it as a money grab. Despite the fact the ICO sold out in 14 minutes and raised $7 million, the BitTorrent token has been embroiled in controversy. Allegedly, the Tron network cannot handle the traffic that BitTorrent will bring to it. If this is true, we could see BitTorrent grinding to a halt and dApps on the Tron network vanishing. There is a good chance this announcement of Tether coming to the Tron network is simply so that Sun can pump up the value of this Tron token to make a bit more cash on the side.
Will Tether Increase Tron dApps?
USD stablecoins are used by developers and institutions to help mitigate risk when investing in cryptocurrencies, and if Tether can prove itself successful over on the Tron network, more institutions could look at using it. Currently the Tron network is rather light in the developer department, and the prospect of being able to tap into the power of Tether could help sway more developers to move to the network – but it’s a long shot.
Whatever the reason behind the partnership, it’s great to see stablecoins becoming available on more blockchain networks. It may or may not have any impact for Tron, but developers will be pleased to see that Justin Sun is trying to make his network grow by giving developers tools they need.