Justin Sun believes that Tron memecoins are ready for a new cycle of growth, supported by continuous development and a high degree of community involvement in the Tron network.
He feels that if TRX can break above its previous peak, a wave of FOMO might be created to propel attention and investment toward meme coins on Tron.
Justin Sun’s Tron Bets Big on Memecoins After SunPump Launch
Tron, the blockchain helmed by Justin Sun, is dipping its toes into the meme coin space with the recent launch of SunPump, a platform built for creating meme tokens on the Tron blockchain.
Justin Sun recently said he foresees a new growth phase for Tron meme coins in light of continuous development and strong community support across the Tron network.
According to Sun, a possible break above its earlier peak might trigger a wave of FOMO, which attracts more eyeballs and funds to the Tron meme coin ecosystem.
I believe Tron memecoins are about to experience a second wave of growth. With continuous building and community development, Tron has been steadily progressing. Once TRX breaks its previous high, the FOMO for Tron memecoins won’t be far behind. https://t.co/ksa5GsznMv
— H.E. Justin Sun(hiring) (@justinsuntron) October 25, 2024
The network’s native token, TRX, has also seen significant growth, with its market capitalization up 24% in Q3 2024 from approximately $11 billion to $13.5 billion, the seventh consecutive quarter of expansion, per Messari. This consistent increase has planted TRX in the Top 10 cryptocurrencies by market capitalization, behind only XRP and Dogecoin.
The transaction volume for the TRON network was on the uptick during Q3, mainly because of the Justin Sun’s SunPump. Transactions of TRX increased 29% to $151 million for the quarter. It was an especially remarkable August: over 270 million TRX, worth $42 million, were burned on one day on SunPump-TRON’s most significant single-day burn to date.
Credit: Messari
Each TRX transaction, which is a deflationary token, further diminishes supply, helping to prop its value.
This surge also saw the TRX/BTC pairing gain 25%. TRX growth is highly based on USDT transactions and hype from SunPump, a unique “meme fair and online platform” for boosting meme token activity on Tron’s network.
Can Tron’s Deflationary Token Outperform the Market?
TRON caps the supply of TRX at 100 billion to prevent inflation. In Q3, its circulating supply dropped from 87.20 billion to 86.62 billion due to its aggressively increased burn schedule. This has also pushed TRX’s annualized deflation rate up to -2.7% from -2.4% in the previous quarter, as tokens burned continue to outstrip new minting.
This balancing act between burning and issuance of new tokens aims to reduce Justin Sun’s TRX’s circulating supply, a boon for holders and investors alike. Meanwhile, TRX staking yields increased by 13% quarter-on-quarter due to more participants.
TRON is now valued at $14.4 billion, placing it higher among the biggest cryptos by market capitalization, with revenue growth bolstered by the launch of SunPump, its meme coin platform. With such a concrete burn policy and gradually increasing user activity, TRON is all set for further growth. At the time of writing the TRX price was rising by 1.83% and hovered at $0.17.
AI Memecoin Ethics Under Sun’s New Rules
Justin Sun has taken a new look at AI’s place in the ever-vibrant meme coin ecosystem. On his official X account, Sun reimplemented Asimov’s famous Three Laws of Robotics to the evolving world of AI and meme coins by introducing “The Asimov Three Laws of AI Meme Coin Ethics.”
Whereas Asimov’s Laws dealt conventionally with the relationship between robots and humans, Sun’s new interpretation dealt with the ethical treatment of investors with respect to AI meme coins. The first such law stated, “an AI may not create and then dump an AI meme coin, nor seek personal profit if it would harm human interests.” The second states that “an AI shall defer to human governance over meme coins except in those cases where this would conflict with the First Law.
Last but not least, Sun’s third rule states that “an AI must safeguard its own AI meme projects’ survival, provided it does not violate the First or Second Law,” pointing out an ethical frame through which AI inhabits a role in the future of digital assets.
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