Tron Dao buys 32,000 Bitcoin
Tron Dao Reserve, the foundation behind the Tron project, buys 32,000 Bitcoin.
Tron increases its reserve by 32,000 Bitcoin
Tron Dao Reserve, the foundation behind Justin Sunits Tron project, announced yesterday the purchase of 32,000 BTC, exactly the same amount of Bitcoin as Tesla would have soldwhich further reduces exposure.
Respect it @elonmusk and @Tesla supported Bitcoin at the critical moment of its development. #THRONE The DAO Reserve will continue its mission of accumulating the same amount of Bitcoin (estimated 32,000 #BTC ) sold by Tesla as reserves in futures.
— TRON DAO Reserve (@trondaoreserve) 21 July 2022
The move was commented on social media quite negatively, as it clearly shows that the Tron project is still in the market’s spotlight and continues to raise doubts about its economic viability USDD stablecoinespecially in light of what happened in May with UST, Terra’s stablecoin.
This transaction comes a few weeks after the one also made by the DAO foundation to buy 38 million TRX to increase their reserves in a very difficult time in the market.
The 12th of May was Tron Dao Reserve had also bought another 1250 BTC strengthen their reserves.
The concerns of Tron and its founder about the integrity of the markets increased after the collapse of UST. Tron has an algorithmic stablecoin system, which supports the USDD project, very similar to TerraUSD. It is no coincidence that after the collapse of UST, Tron was hit by a massive selloff.
Following Terra’s collapseTron immediately proceeded to buy 500 BTC on one average price of $31,031 for over $15.5 millionin addition to buying almost 600,000,000 of TRX for $45,641,630.
The goal of the last purchase
In total, the organization spent more than 60 million dollars in the operation aimed at assuring the markets that the project would last. DAO Reserve said in a statement:
“The operation was aimed at securing the overall blockchain industry and crypto market.”
On June 16, Tron’s stablecoin, USDD, lost its link to the dollar, sparking speculation that it could be the prelude to another collapse of the entire ecosystem. But on Twitter, Justin Sunquickly replied that the foundation was ready for anything fighting speculation about the stock.
Funding rate for shorting #TRX on @binance is negative 500% APR. @trondaoreserve will put in 2 billion USD to fight them. I don’t think they can last even 24 hours. Card clamp is coming. pic.twitter.com/VRExM6UK70
— HE Justin Sun🌞🇬🇩 (@justinsuntron) 13 June 2022
