This year didn’t start out well for most cryptocurrencies, and Tron (TRX-USD) was no exception. The early 2022 crash sent both large and small cryptos plunging while investors could only stand by and watch. Despite the fall that the coin took, experts remained bullish on it, predicting it would be quick to start rising again. Almost exactly one month later, these forecasts are starting to pan out. TRX crypto is rising steadily today following some big news regarding the crypto’s foundation. Social media is excited about the next stage for the coin.
What’s Happening With TRX Crypto
On Jan. 5, a Medium article published by the company announced that the TRON Foundation would be restructuring as a decentralized autonomous organization (DAO). Today brought the confirmation that TRON DAO is moving forward. In a Twitter (NYSE:TWTR) post, the company announced that its Discord was officially live.
🙌 #TRON Discord server is officially online!
See you there!
— TRON DAO (@trondao) February 9, 2022
This announcement has certainly boosted the TRX crypto. As of this writing, it is up 2.44% for the day. Despite some slight downticks, it was quick to rebound and has kept climbing steadily. It’s also been an excellent week for TRX, which is up 8% for the past five days. With gains of 5.51% for the month, it’s safe to say that Tron has recovered from the January crypto crash.
What It Means
It’s clear that TRX’s growth today was spurred by social media momentum. The community seems to support the DAO restructuring. As of now, there’s no reason they shouldn’t. As the January article notes, “the establishment of TRON DAO allows users to participate in governance and decision-making in a fairer, freer, and more flexible fashion.” It adds that for the coin’s protocol, the DAO will be able to “cement the community consensus, boost users’ engagement, and render the decision-making process more transparent, secure, and decentralized.”
Tron’s team has made it very clear that they believe the DAO restructuring to be the best path forward for it. The article also emphasizes that Tron is the first public chain that has grown into a DAO, which the team attributes to the strong community engagement behind TRX that has helped it come this far. As it acknowledges, a blockchain protocol’s prospect and validity are highly dependent on exactly that. The DAO format is becoming increasingly popular as crypto developers realize the power of adapting a format designed to eliminate human inputs.
Why It Matters
One crypto that has recently pivoted to a DAO structure is Floki Inu (FLOKI-USD). The meme token confirmed its DAO restructuring in late January, leading to bullish price predictions. Since then, it has traded well and its digital army has praised the decision.
This decision to join the DAO club also makes sense for Tron. The coin was having a difficult year before the January crash. In November 2021, TRX crypto was delisted by popular trading platform eToro. A month later, founder Justin Sun stepped away from the network he helped create, causing investors to worry as prices fell. The coin clearly needs to move forward and give its investors a new reason to get excited. As today’s events proved, moving forward with the DAO pivot was a good decision that will likely help it grow within the months ahead.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.