On January 28, TRON and Binance supported the sale of BitTorrent token on Binance Launchpad, accepting Binance Coin (BNB) and TRON (TRX).
“Binance Launchpad will commence the BitTorrent (BTT) token sale at 2019/01/28 3:00 PM (UTC). There will be two simultaneous token sale sessions, accepting BNB and TRX respectively,” the Binance Launchpad team said.
Shortly after the token sale began, the platform experienced an issue with its system. According to Changpeng Zhao (CZ), the CEO at Binance, the “astronomical” demand for BitTorrent token caused systematic problems.
Our crowdfunding on #BinanceLaunchpad is over. Due to an important number of participants, the sessions were completed very quickly. We thank you all for sharing your excitement around $BTT. Airdrop to $TRX holders will begin on Feb 11 & trading on Feb 12. https://t.co/gLhgCwH3Zx
— BitTorrent Inc. (@BitTorrent) January 28, 2019
What’s Behind the Astronomical Demand For BitTorrent on Binance?
In July 2018, TRON acquired BitTorrent for a reported $126 million with the intent of making TRON technically the largest blockchain ecosystem by obtaining millions of users of BitTorrent.
When the acquisition was first disclosed to the public, the intricacies of the future operations of BitTorrent were uncertain.
In January, less than six months following the acquisition of BitTorrent by TRON, it was announced that BitTorrent released a token on top of the TRON blokchain protocol that would operate as the native currency of the BitTorrent ecosystem.
Dissimilar to most conventional initial coin offering (ICO) projects, TRON and the BitTorrent team decided to launch BTT on Binance Launchpad, targeting a crypto saavy user base on the largest cryptocurrency exchange in the world by daily trading volume.
With the support from Binance, TRON initiated the highly anticipated sale of BTT, limiting it to BNB and TRX holders.
However, due to a sudden spike in user activity by a magnitude which Binance Launchpad could not handle in a short time frame, some investors could not file their orders in time.
“Damn, no matter how much you prepare, still have bottleneck issues. Even the caching of caching was over loaded. Still under estimated demand. Sorry for the overloaded experience. And thank you for your support! Some issues will fix for the next one,” Binance CEO CZ said.
In response, Justin Sun and the TRON team stated that an airdrop will be executed to offer BTT to investors who could not participate in the token sale affected by technical issues.
“Due to overwhelming demands, Tron team generously agreed to do a small airdrop for people who tried to place orders, but was not successful in buying. Exact numbers will be published soon.”
I would like to explore the possibility with @binance to giveaway free $BTT to everyone on launchpad fails to get #BTT today. #BitTorrent community wants you! Not 100% guarantee. Need to figure out detail. BUT RT if you agree! @cz_binance #TRON $BNB $TRX
— Justin Sun (@justinsuntron) January 28, 2019
The high demand for BitTorrent token is intriguing for many reasons, particularly considering that the cryptocurrency sector is in the midst of its longest ever bear market.
Prominent investors such as Vinny Lingham, a Multicoin Capital general partner, said that it is possible crypto winter turns into a nuclear winter in the short-term if the downtrend of major crypto assets to extend across 2019.
Yet, the community’s interest in BitTorrent demonstrated the optimism of many existing investors in the cryptocurrency market.
Not Everyone is Convinced About BitTorrent Token
The unprecedented level of fascination with BitTorrent token likely comes from the fact that most decentralized applications (DApps) in the global market still lack active user bases.
Apart from a select few DApps on Tron, Ethereum, and EOS, three major smart contract protocols, most DApps have on average several thousand active users.
But, not every investor is convinced about the long-term success of BitTorrent token. Simon Morris, a former BitTorrent executive, for instance, said in an interview with BreakerMag that even with TRON’s large transaction capacity, BitTorrent’s high user activity could overwhelm the system.
It remains to be seen whether TRON will be able to handle the transaction capacity a large platform like BitTorrent requires. So far, the scalability-first approach of TRON has paid off and it was able to reach 100 million transactions in December.
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