Coingape - 11/29/2019 5:41:20 AM - GMT (+0 )
Poloniex Exchange recently announced the acquisition of the TRXMarket, a decentralization crypto exchange. Since the Justin Sun, a leading stakeholder who stands to benefit from both entities, it raises a lot of criticism in the market.
How exactly does one acquire a decentralized exchange?
Moreover, his advertising attempts are far too misleading. “Largest decentralized exchange based on #TRON network,” seems like a bit of a stretch. Shapeshift and Binance DEX are more prevalent in the crypto mainstream.
Justin Sun tweets,
Don’t get me wrong, Justin Sun is putting a lot of effort into finding a use case for his crypto project and increasing its viability. The acquisition by Poloniex also had a positive effect on Tron [TRX] Price. It gained 14% in the last two days. This can be attributed to the fact that the DEX requires the TRX wallet for registration. This is similar to Binance DEX, where a BNB wallet must be used.TRX/USD 1-Day Chart on Bitfinex (TradingView)
Furthermore, his endeavors surely make it the mainstream media and holds the TRX community together. His $4.2 million marketing stint with the lunch with Warren Buffet earlier this year is the most prominent example of it. Whether or not the lunch was canceled due to Chinese police intervention at the same time, it is still a controversy.The future of Poloniex
The current engagement with Poloniex, however, involves a $100 million investment as Justin Sun ups the ante. Poloniex Exchange is reasonably popular in the crypto media. Apart from spot trading, its primary product is futures trading of altcoins with respect to Bitcoin, and lending.
Justin Sun’s plans for increasing the viability of TRX via Poloniex seems like a plausible plan. However, it could backfire as they could lose focus on the cryptocurrency markets at large.
Last but not least, decentralized exchanges are rarely used. Despite its’ offering for decentralization, investors still rely on open source wallets and centralized exchanges for trading purposes. The DEX market is new and hasn’t caught on as investors are stuck with their earlier platforms.
Do you think that Poloniex and Tron will be able to rise to levels of Binance? Please share your views with us.
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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