TRON founder Justin Sun teased yet another upcoming acquisition, but does the release of 33 billion TRX threaten to derail the coin price?
TRON’s Justin Sun repeated the trick that made him famous Monday, as he announced an upcoming announcement for BitTorrent Token holders.
Specifically, the TRON CEO hinted at an impending acquisition – one that he says will benefit both TRON and BitTorrent Token. On Sunday, Sun tweeted to his 2.1 million followers:
Despite having more followers than any cryptocurrency CEO, Twitter’s reaction to Sun’s pre-acquisition announcement was skeptical at best. To find out why Justin Sun’s engagement rate doesn’t match up with his follower count, read:
How Justin Sun Manufactures Hype for the TRON (TRX) Train
The TRON community’s uncertainty probably stems from Sunday’s announcement that 33 billion TRX would be unlocked on New Year’s day. Coins which are pre-mined, such as TRON, XRP and many more, are essentially left to the whims of their founders.
Often the founders set up a release schedule, along with many other caveats and provisions which decrease the likelihood their unlocked coins will be unceremoniously dumped on the market.
TRON’s plan to unlock 33 billion TRX is cause for more concern than usual, With 99 billion TRX in existence, the New Year’s day unlock will represent one third of all TRX. With 66 billion TRX currently in circulation, this effectively increases the money supply by 50%.
Noises from the TRON team thus far suggest the funds will be spent wisely on projects that will eventually pay back to the TRX community.
That community is one of the most perilously placed in all of cryptocurrency. With just hours away from the massive coin release, many TRX holders now fear a very negative market reaction.
One holder said he would sell his TRX bags in anticipation of what he sees as an inevitable price dump. He plans to buy his coins back after they’ve hit the $0.002 price point – an 85% decrease from TRX’s current valuation.
Another high profile acquisition wouldn’t be out of character for Justin Sun. In the past two years he snapped up BitTorrent, and more recently, acquired a controlling stake in cryptocurrency exchange, Poloniex.
Some have speculated that much of the 33 billion TRX will finds its way to Poloniex. The exchange would stand to benefit from the increased attention an enormous influx of TRX trades would bring to it. Not to mention the trading fees.
This article was edited by Sam Bourgi.
Last modified: January 22, 2020 11:40 PM UTC