A few days ago, the price of Tron suddenly and unexpectedly took a massive 16% plunge. While this was a general red day for cryptocurrencies, none of the major ones got hit nearly as hard as TRX. What led to this was a combination of fake rumors & ensuing negative social media sentiment.
Tron founder Justin Sun was scheduled to have lunch with legendary billionaire investor Warren Buffet on the 25th of July. Buffet has long been an outspoken skeptic of crypto and Sun was aiming to potentially change his mind at a staggering cost of $4.6 million just for a lunch with the mogul. Unfortunately, Mr. Sun untimely fell ill with a bout of kidney stones just a few days before the meeting and was subsequently forced to postpone it.
Somewhere somehow, a report came out that the issues of Mr. Sun were legal rather than medical, and like a botched game of “telephone”, wild, false rumors because to spread. Before we knew it, crypto Twitter was exploding with the theory that Justin Sun was being held by authorities in China, unable to leave because of lawbreaking accusations. Speculation ranged from illegal fundraising, to gambling, and even pornography.
Shortly afterward, some counter-reports came highlighting the ridiculous nature of the initial reports. Photos gradually surfaced of Justin Sun in the San Francisco area and before long, Mr. Sun himself directly live-streamed a video from the San Francisco area, highlighting the Bay Bridge in the background and putting to rest the false rumors for good.
Unfortunately for traders and investors of Tron, the damage had been done and TRX has thus far not been able to recover its losses from the fiasco.
This incident highlights the importance of gauging social media sentiment for traders. Although the news was false and was eventually proven so, the sentiment still matters and price movements often happen based on that alone. This is why the CryptoMood app is so important. It not only brings you the news but also its cutting-edge AI algorithm tracks 50,000 different sources to bring you the most accurate, early signals of social media sentiment. Allowing you to protect yourself and profit from situations like these.