Not too long ago, smarttest.wpmudev.host reported that Tron had sealed a major deal with Baidu. Later on, another trusted source claimed that the relationship between Tron and Baidu wasn’t a partnership after all. According to the reports, Tron was employed by Baidu to build, operate and debug blockchain-based products that are on the Baidu cloud. A part of the report is as follows:
“It wasn’t really a partnership at all because both parties haven’t signed any contract. In fact, it only means that Tron will purchase cloud computing products from Baidu. On a blockchain level, no contract has been signed. The cooperation is in the basic cloud business field Tron will create, operate and debug the products on Baidu’s cloud that are based on the blockchain. The key is to optimize the development experience and ensure compatibility”.
Did Tron Mislead The Cryptocurrency Community?
Some experts in the industry have had a lot to say about this controversial partnership. Many believe that Tron gave the cryptocurrency community the idea that it has entered into an actual partnership with Baidu when in reality it’s just a client of the Baidu cloud that was employed to improve the company’s cloud computing infrastructure. This isn’t a formal partnership and experts believe it is wrong for Tron to give people the impression that it is.
The co-founder of Blocktowers, Ari Paul, had this to say about the issue:
“If it’s true that Tron was only employed by Baidu to attend to its cloud computing resources, then this is misleading marketing. It’s like buying a device that has the Microsoft Windows installed then claiming that you have entered into partnership with Microsoft. Tron should have clearly stated the limited nature of the partnership”.
Another well-known cryptocurrency analyst, Boxmining said that Baidu has a blockchain network known as Xuperchain. So, entering into another blockchain-based partnership with Tron or any other external project will be unlikely.
“The so-called partnership between Tron and Baidu is equivalent to buying cloud services on a business level and has nothing to do with blockchain. Do you expect that Baidu will source for external projects when it already relies on the Xuperchain blockchain? I am happy CNLedger brought the facts to light”.
What Did Tron Foundation Do Wrong?
For starters, Tron Fondation did not make any formal announcements about the partnership. However, Justin Sun, Tron’s founder and CEO, in a series of tweets said that the company has partnered with another industry giant for the first time in its history. He even said that the partnership is with a giant that is worth tens of billions of dollars per valuation.
To avoid reputation damage and avoid misleading investors, blockchain projects are supposed to maintain absolute transparency. All the details of their partnerships and projects should be explicitly described. Any information that misleads investors into purchasing cryptocurrencies will be seen as dishonest.
Tron (TRX) Price Analysis
At the time of writing, Tron (TRX) was down against the USD by 0.10%. It was trading at $0.024018. Against Bitcoin, it was up by 0.37%. With a trading volume of $81,230,938 and a market capitalization of $1,579,129,596 its not clear if the issue on ground has negatively influenced the price of TRX.