This June, Tron acquired BitTorrent for over USD 126 Million. In a new type of network promotion, Tron is now rewarding seeders on the p2p filesharing service with a TRX20 token. While at the time of the acquisition the aims were unclear, Justin Sun did indicate that Tron was now “the largest decentralized Internet ecosystem in the world.”
Perfect marketing by Justin Sun
BitTorrent had not made any significant profits in a decade, and the company had run into considerable difficulties. Many were wondering why Justin Sun would purchase the service for over USD 126 Million when he could simply have created his own platform for a much smaller figure. But the reason is now clear and makes complete sense. BitTorrent claims to have upwards of 170 Million users for its various services. Sun is gaining access to a giant market by rewarding them with a new TRX20 token.
It can be compared to a giant airdrop, and people who are interested in file sharing may also be the type interested in the new token. The network effect is going to play a huge role in the future of successful cryptocurrencies, and those that can gather a large market share early will be the most profitable in the long-term. Tron already has a fanatical following, and Justin Sun is viewed as a celebrity by many in the community. Purchasing a well known p2p file sharing service and giving away free tokens is an excellent move that will reverberate perfectly within the Tron ecosystem.
Ethereum under fire with Project Atlas
The codename for the integration of BitTorrent and Tron is Project Atlas. Speaking on the project in a press release Justin Sun stated –
“[BitTorrent] will feature faster downloads, more seeds, no mining, and backward compatibility. It is adapted to the world we live in today: mobile, connected, and transparent. We aim to eventually empower all content creators and their communities by eliminating the middleman and enabling content creators to distribute directly to users.”
BitTorrent will remain free, and the features are going to be extended to mobile, desktop, and third-party torrent clients. The new token will make BitTorrent faster and easier to use, while also serving as the perfect advertising platform for Tron in general, increasing its existing popularity and positioning it for the future.
Tron has its flaws, and its architecture may leave much to be desired. However, the marketing acumen and foresight of Justin Sun is catapulting Tron into the spotlight once again at the expense of Ethereum, which is currently under severe pressure to maintain its position. Tron recently removed itself from the Ethereum blockchain, burning nearly USD 2 Billion worth of tokens in the migration process. Justin Sun claims that the network has gained more followers in the 90 days following its migration than Ethereum did during the whole of 2015.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.