Tron founder ready to spend another $2 billion, fighting a vendor war
The marked bearish dynamics of the cryptocurrency market prompted Justin Sun, the founder of Tron to take steps to protect the project's native token TRX from the investors’ actions.
As the Head of Tron reported, the Tron DAO pool will allocate $2 billion to deal with short sellers. According to Sun, the measure will scare off traders who want to open short positions against TRX and stop the token's drop, “I don'tthink they can last for even 24 hours. Short squeeze is coming.”
The cryptocurrency market has lost nearly $300 billion in three days. The total value of all coins in circulation fell to $946 billion in the moment, versus $1.23 trillion as of Friday, June 10. Bitcoin, Ethereum, and other cryptocurrencies updated multi-month lows. TRON dropped by 17% to $0.061 in 24 hours.
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 base token. In TRX's case, Sun noted that the funding rate to sell TRX on Binance reached 500%.
Funding rate of shorting #TRX on @binance is negative 500% APR. @trondaoreserve will deploy 2 billion USD to fight them. I don't think they can last for even 24 hours. Short squeeze is coming. pic.twitter.com/VRExM6UK70— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) June 13, 2022
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