The Chinese cryptosphere was gripped with speculation last week after a tweet announced that the Tron Foundation had a new partnership in the pipeline. (Tron founder, Justin Sun, practically lives on Twitter.) However it was duly confirmed yesterday that the Chinese entertainment-focused blockchain start-up will be working with internet giant Baidu.
The original Tweet, which appeared on October 12th, was a teaser stating; “Finally, first time to partner with tens of billions USD valuation industry giant. Guess the name.” This week, however, the rumors were confirmed and the name of the mystery partner revealed.
“#TRON is joining forces with Internet service giant Baidu and will continue to work with large cloud service providers to offer blockchain solutions, make the technology more accessible for users and small business alike. End goal: mass adoption of #blockchain. $TRX”
The post, in Chinese, basically stated that the two were teaming up to work on a large cloud service platform with the goal of providing improved blockchain solutions. Tron’s end game is mass adoption of blockchain and preferably its own crypto-currency, TRX, whose market capitalization, at just below $1.6 billion, puts it in 11th place.
Local media outlet Odaily dismissed the “partnership” stating that it was basically about Tron buying cloud computing resources from Baidu, and that “the two parties have made no contact at the blockchain business level”.
The report went on to state that Baidu also has plans to release its so-called “Blockchain Commercialization Super Partner Plan v1.0.” This focuses on tech exploration and revenue sharing with “commercial super partners” and is reportedly based on the firm’s Super Chain infrastructure. Baidu has already followed others by announcing plans to commercialize the blockchain, offering a Blockchain-as-a-Service (BaaS) platform in a white paper published last month.
While the agreement is still a big step for the Tron Foundation, calling it an actual partnership might be optimistic. As crypto pundit Ari Paul commented; “If I buy a computer with Microsoft Windows installed, I should not claim to have partnered with Microsoft without clarifying the limited nature of the ‘partnership.’”
TRX did not react to the news and is still in the grips of the bear market that has stifled virtually all growth in digital asset prices this year. Today the token is trading at $0.024, down a little on the day but up over 14% over the past week. With markets at rock bottom this year it will take more than the promise of a good partnership to lift prices, as Tron has discovered.