Bitcoin Global News (BGN)
October 17, 2018 -- ADVFN Crypto NewsWire -- 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