There has been a considerable amount of speculation regarding last week’s mysterious announcement by TRON (TRX) CEO Justin Sun, where he claimed the project had secured a partnership with an industry giant valued at tens of billions of USD.
One prevailing theory, which was first floated by Coiness after claiming that it had a conversation with TRON, is that the mystery partner is China’s IT giant Baidu (BIDU) that is largely considered the “Google of China.” This ultimately led to a cascade of speculation as to how TRON would fit into the company which controls the majority of internet searches in China.
However, a recent article in Bejing news outlet Odaily shows that this “partnership” is nothing more than a simple cloud computing purchase, which is a normal practice for businesses and even blogs.
1/ ODaily: The 'partnership' between Baidu and Tron is basically about Tron buying cloud computing resources from Baidu. "The two parties have made no contact at the blockchain business level".
— cnLedger (@cnLedger) October 15, 2018
“At present, the cooperation mainly focuses on the purchase and use of [Baidu’s] basic cloud computing resources,” states the Odaily report.
Given this revelation, it seems clear that the arrangement between TRON and Baidu is less of a partnership and more of a simple client-customer transaction. However, Baidu is planning to launch a cloud blockchain partner program, which might involve TRON in the future.
Sun hasn’t confirmed yet that this is the partnership he initially referred to, as we initially speculated that it could actually be First Data (FDC), a financial services company that notably owns Clover, a major developer of point-of-sale (POS) terminals for small businesses. TRON recently announced Poppy, a POS terminal powered by Clover’s underlying technology that is designed to bring TRX as an option for merchant payments.
Since the Sun’s initial tweet, TRX has risen back above $0.024 with the altcoin briefly rising above $0.026 today. The project currently has a $1.62 billion market cap, making it the 10th largest coin in the AltDex 100 Cryptocurrency Index (ALT100).
Photo: Jon Russell / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.