In a recent interview with Yahoo Finance, Stellar’s Co-Founder and CTO, Jed McCaleb, referred to the Tron (TRX) project as ‘garbage’ when asked about his thoughts on the general temperature in the crypto industry. He particularly criticized projects that raised massive amounts of capital during the ICO boom of 2017/2018 with zero technical merit to back up such funding. His exact words were as follows:
The allocation of capital and resources is wild to watch, when these projects that have zero technical merit get millions of dollars. It seems like a big shame. Hopefully that will start to change. One of the nice things that comes with the market calming down—I still say it’s not a bear market—it means there’s less of that.
Ninety percent of these projects are B.S. I’m looking forward to that changing. Things like Tron, it’s just garbage. But people dump tons of money into it, these things that just do not technically work.
In a lot of cases it just needs to be some sort of digital payment and you might as well use Stellar or bitcoin. You don’t need a separate type of payment…
Justin Sun Responds
The story by Yahoo Finance was also captured by Cointelegraph from where prominent Tron community member, Misha Lederman, came to the defense of Tron. He provided stats that prove that the Tron project is not garbage. He pointed out the differences between the two projects as can be seen below:
#TRON transactions Dec 31 2,803,372
Stellar Txs Dec 31 8793
#TRX did 318 x more txs vs XLM
Numbers speak louder than “garbage”
Only hours later, Justin Sun responded by stating that Tron is not a competitor of Stellar in the sense that the latter network has significantly lower transaction volume. Justin also noted that the Stellar network is centralized with zero decentralized applications running on the network.
He also added that in 2019, TRX will take the place of XLM in the crypto markets according to market cap. XLM is currently ranked 6th with a market cap of $2.22 Billion. TRX is ranked 10th with a market cap of $1.318 Billion at the moment of writing this. TRX need only be valued at $0.0333 to take the number six position from Stellar (XLM).
Justin’s exact response, and Misha’s initial tweet, can be found below.
What are your thoughts on Justin Sun’s comments that Stellar (XLM) is not a competitor? Please let us know in the comment section below.
[Image courtesy of @JustinSunTron]
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.