Because of the recent decline in the price of TRX (TRX), Tron’s founder, Justin Sun, announced on Twitter that the Tron DAO Reserve will deploy $2 billion to combat short sellers. Tron’s price on CoinMarketCap was $0.06362 at the time this article was written, representing a decrease of 18.05 percent over the previous twenty-four hours. As of the time, this article was written, the total market capitalization of Tron was USD 5,793,985,125. At this moment in time, there are 92,536,363,276 TRX coins in circulation.
Short-term investors might experience what is known as a “short squeeze” when they are forced to buy back their bets to liquidate their holdings before they incur a loss of capital. As a direct consequence of this, the expenses incurred by the dealers increase. According to Sun, the “funding rate” for shorting TRX on Binance is now at a whopping 500 percent.
As part of the preparations for the USDC peg, Sun claims that 700 million USDC have been moved to the Tron DAO Reserve.
A retweet from Tron DAO Reserve was one among the tweets that Sun retweeted with the comment “Doing our part.” Binance has been provided with 100 million USDC by the Tron DAO Reserve, which the exchange expects to utilize to purchase further TRX.
On Saturday, the Tron DAO Reserve made purchases totaling trillions of dollars worth of Bitcoin and TRX. It was decided to establish a reserve for the over-collateralization of cryptocurrency and stablecoin holdings. At any one moment, there is a guarantee that the reserve will hold a sum equal to or more than 130 percent of the total amount of US dollars currently in circulation.
Additionally, Tron said that the website for the Tron DAO Reserve would begin posting real-time information on the collateral ratio beginning on June 5, 2022. The number was at 280 percent when we checked on it first thing this morning.
According to Sun, the development of a brand new stable coin that will be known as USDD will begin on the TRON platform in April this year. The development of a decentralized stable coin known as USDD will be one of the most significant achievements that the organization will achieve.
In addition, he said that the US would be safe to hold over the long term as a result of the Tron DAO Reserve. The first method of dispersal will make use of TRC coins, with each coin having a value equivalent to one TRON dollar. It has been decided to make the TRON DAO Reserve available to the general public to facilitate the management of the USDD reserves.