Justin Sun announces stablecoin backed by Tron and BitTorrent

  • CEO of Tron Justin Sun announced a new stablecoin that will be backed by BitTorrent and Tron.
  • Tron’s stablecoin is intended to decrease the exposure of holders to cryptomarket volatility.
  • TRONZ team nears Guinness record for conducting the largest test of a protocol on a blockchain.

On January 16 Justin Sun, CEO of Tron, announced the launch of a stablecoin that will be backed by Tron and BitTorrent. Sun has been throwing clues to the Tron community since last week. The CEO of Tron made a query on his Twitter account about possible names that the stablecoin could have.

Despite the announcement, the price of Tron (TRX) has responded modestly. At the time of publication, it recorded a gain of 5.79% in the last 24 hours. Although in the weekly chart the movement is bullish with gains of 26.08%.

What is known about the stablecoin of TRON and BitTorrent?

Justin Sun’s announcement did not reveal many details. The stablecoin backed by Tron and BitTorrent has yet to define a name and an official release date. It is expected to be released soon and could be an alternative to volatility in the cryptomarket.

The Tron community responded positively to the announcement. Sun shared the Tweet from the user Intuit_Trading. The member of the Tron community explained how TRX users will be able to mitigate market volatility. He stated that TRX or BTT could be used as collateral when trading:

Stability is maintained by changing the interest rate you pay for the stablecoin (SC). If SC >1 USD then interest rate goes down, which increase SC supply b/c more ppl create SC. If SC <1 USD interest rate goes up, which decreases supply b/c ppl destroy SC to get back collateral

In addition, the Tron community member explained that TRX users can put some of their investment into the stable currency. That way, the range of exposure is lowered and the holders of the stablecoin can be protected in a bearish market.

Guinness Record for the TRONZ Foundation

On the other hand, the Tron Foundation announced that the TRONZ team is close to achieving a new Guinness World Record. The team is developing Tron’s main chain anonymity technology. Recently, they completed the deployment of the public test. The protocol test will be one of the largest ever conducted on a blockchain.

The MPC (Multi-Party Computation) Torch project on which the anonymity protocol of Tron’s main chain is based will use zk-SNARKS to “rewire the internet”. The main goal of the team behind the protocol is to increase the credibility and security of the setup.

As reported by CNF, the Tron network has managed to reach important milestones in recent months. The Tron network became the 3rd blockchain project by number of active addresses and at one point its transaction volume surpassed that of Bitcoin and Ethereum. The latter was a momentary success, but positive and could be an indicator of the future of the Tron network.

Follow us on Facebook and Twitter and don’t miss any hot news anymore! Do you like our price indices?

About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

Comments are closed.