Not every piece of news released by Blockchain firms is legitimately what it seems, at face value.
Quite often, teams in the Blockchain industry report partnerships with well-known, more traditional companies that end up being false or simply, not as significant as they seem.
One example, which is mentioned by Bitcoin magazine, is tied to a project called Carvertical, which had claimed to be the first mover in terms of using the Blockchain with connected vehicles with BMW. In the end, it reportedly came out that BMW’s involvement with the Blockchain network did not stretch anywhere beyond the car company using one of Carvertical’s open source tools.
Another, more recent example, involves the oft-criticized Crypto network called Tron. On October 13, Cointelegraph reported that Tron had partnered with Baidu, which seemed to be excellent news for the former company, as Baidu basically stands as China’s Google.
Given that they drew their information from a source called Coinness on Twitter and the partnership’s details were not released, it would have been logical if specific questions were raised as to the veracity of the news. Unfortunately, this does not seem to have been the case.
As has been the norm for the Crypto market, especially back in 2017, once the news was released, Twitter and other platforms seem to explode with interest. Even worse, the Tron currency’s price seemingly exploded 10% as of October 14.
On Tuesday, it was announced that all of this hype was essentially false.
Tron’s partnership with Baidu has little to do with its main product. In fact, it appears to be nothing more than an attempt to share cloud computing resources, with the Blockchain as a mere part of this effort. Despite the fact that the partnership does involve the Blockchain in the end, it represents a key example of how easily investors in this space can be swayed by the words of Blockchain CEOs.
Next time, when a CEO claims that a partnership is in the works with a titanic company, take moment to wait until that partnership is truly announced before throwing any money behind the company’s efforts.
Just like with traditional investments, minimizing risk is key. When regulation is absent, it can be said to become even more so.
By: BGN Editorial Staff