TRON Foundation Acquires Steemit; Investors not Enthused

TRON Foundation Acquires Steemit; Investors not Enthused

TRON Foundation has acquired major blockchain companies and entered into significant partnerships with the aim of providing great value for the TRX token.

The company, which was founded by Justin Sun, has recently acquired Steemit; a platform for content sharing that rewards customers for providing quality content.

Accordingly, the strategic deal allows Tron to expand the number of DApps it has under its umbrella, through using a lot of applications built on Steem blockchain.

In addition, both companies will collaborate together for the migration of token STEEM into Tron network.

For his part, Ned Scott, co-founder of Steemit, said on his twitter account that he decided to sell his company to TRON after years of working on the project.

The acquisition details are still unclear. However, it seems that TRON seeks to further accelerate market acceptance of blockchain and cryptocurrencies, given that Steemit’s continued breakthrough will serve as another trigger for TRON.

Justin Sun said:

“We are very excited to welcome Steemit into the TRON ecosystem… Together we will usher in a new era of decentralized social networking.”

Traders not enthused about merger

However, it seems that Steemit traders are not enthused about the deal and this reflected on the token’s performance. Steem token has declined 7.50 percent to $0.2554 over the last 24 hours. The cryptocurrency ranks 78th with a market cap of $86.60 million.

It should be also noted that the decline comes as a result of the turbulence facing the market. In addition, it seems that investors believe the partnership with TRON would not provide much value to the blockchain industry.

Earlier, Cryptolydian reported that a lawsuit was filed against Justin Sun, the founder of TRON and CEO of BitTorrent, and Head of Engineering Cong Li, accusing them of harassing and finally laying off two employees.

The legal action was taken after the employees Richard Hall and Lukasz Juraszek objected to management practices and some applications developed by the company. 

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.