BitTorrent Inc. has been purchased by Justin Sun, the founder of Tron (TRX) for $140 million according to an article in Variety. The cash sale aligns two similar concepts: decentralized file sharing, and a decentralized currency. When putting these two platforms together, it’s not hard to imagine a new way to buy, sell, trade and share digital content in a way that rivals what iTunes was not long ago.
The $140 million price tag may seem high, but not when it’s compared to the 170 million users who have installed BitTorrent Now. At a cost of less than $1 per user, Tron may effectively take its cryptocurrency and decentralized platform to the next level as these users start to use the coin for transactional purposes.
BitTorrent was one of the earliest, and currently the largest decentralized platform for filesharing. Users may store files, and distribute content to one another at no cost. With the addition of Tron, we can expect all sorts of ideas to come to fruition. For example, it wouldn’t be much of a leap to create a decentralized eBay of sorts, using TRX as its currency.
It’s common advice to buy the rumor and sell the news. Rumors about this acquisition started about a month ago, when people in the file sharing community were discussing how Sun and BitTorrent were negotiating a potential deal. At present, it appears as though the price has been confirmed, but there are a few small disputes to settle before the deal is fully inked.
BitTorrent’s strength is in the sharing of video, music and other content that requires large file sizes, such as software. The company claims that file sharing on its platform comprises 40% of the world’s total internet traffic.
Sun, the founder of Tron, previously worked for Ripple (XRP). Rather than focusing predominantly on banking institutions as with his previous employer, Sun built Tron with a mission to build a “truly decentralized internet and its infrastructure.” In this way, the acquisition of BitTorrent is completely in alignment with the company’s mission, while bringing a huge user base, and perhaps some code that will not need to be rewritten.
The Tron MainNet keeps a record of TRX transactions, which currently have a market cap of about $4.6 billion and a price of just over 5 cents. The price has been climbing since the news hit, so we may see the coin reach April’s high of 10 cents. If that happens, then people who get in now stand to double their money. Keep in mind, we are not financial advisors, and this is only an opinion. You should consult with a professional before making any financial decisions. However, besides the price action, we can also see that the current volume is nowhere near what it was just a month ago. If volume picks up and price continues to rise, then we could see some very good things.
Regardless of any price movement, this acquisition is good news for people who believe in the technology behind Tron. Linking a decentralized payment method with a decentralized file sharing network will inevitably lead to a decentralized internet of value. The question is, how big will it grow?