Tron Dao purchases 32,000 Bitcoin
Tron Dao purchases 32,000 Bitcoin
Crypto

Tron Dao purchases 32,000 Bitcoin

By Vincenzo Cacioppoli - 22 Jul 2022

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Tron Dao Reserve, the foundation behind the Tron project, buys 32,000 Bitcoin.

Tron boosts its reserve with 32,000 Bitcoin

Tron Dao Reserve, the foundation behind Justin Sun‘s Tron project, announced yesterday the purchase of 32,000 BTC, the exact same amount of Bitcoin that Tesla would have sold, further reducing its exposure.

The move was commented on social media rather negatively, as it clearly denotes that the Tron project remains in the market spotlight and continues to raise doubts about the financial viability of its USDD stablecoin, especially 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 boost its reserves at a very difficult time in the market.

On 12 May, the Tron Dao Reserve had also purchased 1,250 BTC to strengthen its 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 that of TerraUSD. It is no coincidence that after the collapse of UST, Tron was hit by massive sales.

Following Terra’s collapse, Tron immediately proceeded to purchase 500 BTC at an average price of $31,031 for over $15.5 million, in addition to buying nearly 600,000,000 of TRX for $45,641,630. 

The goal of the latest purchase

In total, the organization spent more than $60 million in the operation aimed at reassuring the markets that the project would hold. The DAO Reserve in a statement said:

“The operation was aimed to safeguard the overall blockchain industry and crypto market”.

On 16 June, Tron’s stablecoin, USDD, lost its peg to the dollar, sparking speculation that it could be the prelude to a new collapse of the entire ecosystem. But on Twitter, Justin Sun, promptly retorted that the foundation was ready for anything to combat speculation about the stock.

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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