- Tron Foundation unlocks 33 billion TRX tokens worth more than $450 million
- TRX price may continue to suffer due to the dump
Tron News Today – Recently, the Tron Foundation announced that it wants to unlock 33 billion TRX tokens on New Year’s Day. The Foundation disclosed this via a tweet and was asking the Tron community how they want the fund to be used. It is January 1, New Year’s Day, and the Tron Foundation has gone ahead to unlock the tokens.
Tron Foundation Unlocks 33 Billion TRX Tokens
The Tron Foundation just unlocked one-third of the total supply of Tron (TRX), worth more than $445 million at current prices. This is a huge amount of token to be released at once and it may flood the market, causing more harm to the struggling price of TRX. The huge hoard of TRX tokens was quietly locked in Dec. 2017, six months before the launch of Tron Mainnet.
TRON (TRX) Price Today – TRX / USD
The Tron Foundation locked the funds to protect the vital interests of its supporters. Once again, the funds have been made available to the Foundation – the single largest holder of Tron (TRX) tokens. The total number of tokens released is 33.25 billion and they are worth about $445 million. The official communication channels for Tron disclosed the unlocking of the tokens, possibly because of the adverse effect it would have on the price of the digital currency.
According to the announcement, the Tron Foundation may decide to lock these funds again, or even burn them, just to preserve the price of the digital currency. Nevertheless, the most likely scenario is that most of the tokens would be used for the development of the ecosystem. Over time, the tokens would be sold on digital currency trading platforms, increasing the supply of TRX and suppressing its value.
Initial Distribution of Tron (TRX) Tokens
The Tron token has a total supply of 100 billion, according to the whitepaper of the project. Based on the allocation of the tokens, 40 billion TRX went for public ICO, 15 billion for private token offering, 10 billion for payment to Peiwo corporation, and 35 billion for the Tron Foundation. At the peak of the initial coin offering (ICO) mania, Tron was able to raise $70 million in Sept. 2017 from its public sale. Nevertheless, the Foundation did not disclose details regarding the payment to Peiwo Corporation and the private token sale.
Tron (TRX) Price May Continue to Struggle
Tron (TRX) lost more than 39 percent of its value against the US dollar in 2019. The performance of the digital currency is even worse when compared to Bitcoin, as it recorded a loss of more than 67 percent. The release of these tokens might cause TRX to suffer more. Some members of the Tron community have already started selling off their TRX tokens, as they fear TRX might dump heavily after the unlocking.