Mon. Apr 6th, 2020

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Tron Set To Kick Off The Year Unlocking 33 Billion TRX, Could This Hurt Prices?

2 min read

Tron has recently announced that it will be kicking off the year unlocking 33 billion TRX. This amount is valued at around $445 million at the time of writing this. Surprisingly, the Tron foundation made this announcement without outlining what the TRX was planned for. This has particularly rattled investors who are worried that the foundation could end up dumping the tokens. This could affect prices negatively which are already not doing so well.

The Foundation despite not outlining its plan has however called on the Tron community to suggest how best to use the funds. The question was in the form of a poll which included re-locking the funds, instituting a coin burn or investing in partnerships. Both partnering and burning the coins are catalysts for a rally for TRX. However, relocking the funds is neither bearish or bullish. If anything it only means a lot of uncertainty for the days they remain unlocked.

There have also been some calls for the funds to be used to boost crypto exchange Poloniex. Tron funder Justin Sun has recently invested in the exchange in the interest of Tron and TRX. If the funds were used to boost the exchange they would go a long way in seeing Tron grow.

Tron Community’s Fear Of A Dump

Although it is unlikely that Tron is unlocking the funds to dump them, it remains a legitimate fear. TRX is not performing well, which has been the case with many altcoins. If Tron over the next few weeks dump hundreds of millions worth of TRX, this could see prices suffer.

Hopefully, Justin Sun and his team have a well laid out plan that they can provide investors with before there is panic and investors trigger a sell-off. In this case, it will be made worse if Tron’s intention in the first place is to dump the 33 billion TRX.

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Cryptomute | 2020