During the project’s existence, we could see different dynamics in Tron’s historical price chart. Tron ecosystem founder Justin Sun announces willingness to spend $2 billion to protect TRX tokens from short selling.
The cryptocurrency market has lost almost $300 billion in three days, with the total value of all coins in circulation falling to $946 billion from $1.23 trillion as of Friday, June 10. Bitcoin (BTC), Ethereum (ETH) and other cryptocurrencies updated to multi-month lows. TRON (TRX) fell 17% to $0.061.
The pronounced bearish dynamics of the cryptocurrency market prompted Justin Sun, the founder of Tron, to take measures to protect the native token project TRX from the actions of investors. Especially given the tron price chart analysis.
The Tron founder tweeted that the Tron DAO pool will devote $2 billion to fighting short sellers. According to Sun, the measure will scare off traders who want to open short positions against the TRX and stop the token from falling:
“I don’t think they’ll be able to hold out for at least a day. A short squeeze is coming.”
A short squeeze is a situation in which traders who have bet on an asset’s decline are forced to close positions by buying back the underlying token. In the case of TRX, Sun noted that the funding rate to sell TRX on Binance reached 500%. In May, at the height of the Terra crisis, San had already pledged $2 billion to protect the ecosystem. Back then, the funding rate to sell TRX on Binance was 100%. There were also problems with Solana SOL prices.
Letizo news: Tron DAO defends itself
The Tron ecosystem has had a busy day. The project’s creator declared war on TRX sellers and allocated $2 billion to it, and Tron DAO mobilized to protect its newborn algorithmic stablecoin USDD.
Amid extreme market volatility, several stablecoins lost parity at once, including USDD. Tron DAO quickly invested $700 million in USDC to protect USDD’s peg to the US dollar. You can track Solana price history 2021 and see similar dynamics.
USDD is almost the full twin brother of TerraUSD (UST), the famous stablecoin that detached itself from the dollar and brought down the entire Terra ecosystem. However, the project seems to have learned its lesson from the UST crisis and managed to prepare for potential market turmoil.
Stablecoin’s peg to the dollar was originally supposed to be backed by algorithms. But in early June, the Sun said it intended to beef up USDD security: according to the Tron Foundation, the new infusion of USDD is secured at 300%. You can find out the latest developments on the Letizo news website.