After the successful launch of the main net, Tron (TRX) has also locked away 33 billion tokens in 1000 addresses. The Tron foundation did this as a security measure for the network. This means that if at any point the network is compromised, Tron can use the other accounts to stabilize the network, and maintain confidence in the network. It functions in a similar manner as ripple that has billions of ripple (XRP) locked away, as a stabilizing factor to the network. Tron stands to reap a number of benefits from locking away these coins.
The first one is that it will attract more corporate users to the Tron network. That’s because one of the biggest hindrances to crypto adoption is the lack of price stability. No major corporation would make use of a crypto whose value can drop drastically, due to extraneous circumstances such as a hack. Therefore, by creating this stabilizing effect, Tron (TRX) is likely to attract a huge number of corporations looking to make use of crypto as a form of currency. This is great for the long-term growth of this crypto, since adoption does have an impact on crypto intrinsic value.
This confidence will also attract more investors into the Tron blockchain. That’s because people have already seen what has happened to cryptos that have had security vulnerabilities. For instance, when Verge was compromised, its value plummeted and Verge (XVG) has not recovered since that time. If there was a stabilizing factor like what Tron has at the moment, its value would not have gone down that hard. In essence, Tron is guaranteed to grow in value as investors move to adopt it, as a way to seek value growth.
Besides, by locking these coins, Tron (TRX) has increased the confidence that investors have in it, as a decentralized platform. That’s because they have made these addresses public and created a system through which, Tron users and investors can keep tabs on the 1000 accounts, on which they are stored. This transparency is guaranteed to drive up the number of investors putting up their money into TRX, further pushing up the value of this coin in the long-run.
In essence, everything that Tron is doing points to a future where Tron value will grow in the future. They have successfully shifted from the Ethereum blockchain, secured coin stability by locking away coins, and are securing partnerships that will drive up the value of this coin in the long-run. A confluence of these factors will push up the value of this coin in the long-run.
In about 5 years, Tron (TRX) could easily be worth upwards of $10 a coin. Let’s not forget that the Tron foundation will continue to do coin burns, and cut on the long-term supply of this coin. With a reduced coin supply and the continuous increase in its intrinsic value, $10 is a very conservative figure for Tron.