Third Of TRX’s Supply Worth Over $400 Million Unlocked: Report

A third of TRX’s supply worth more than $400 million was unlocked on New Year’s Eve and the coins are expected to flood the market and further harm the price that is already struggling as we reported in our TRX news.

The enormous quantity of Tron tokens was quietly locked in 2017 in December which was six months before the launch of the mainnet of the project. These funds were locked by the Tron Foundation to protect the ‘’vital interests of the supporters.’’ These funds have become available to the foundation which is the single-largest holder of the tokens.
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These 33.25 billion tokens are now worth about $446 million.

The official communication channels for Tron made little mention of the tokens which was potential because of the adverse impact it will have on the coin’s price. The Tron Foundation may choose to lock these funds again or could even burn to preserve the value. The most likely scenario is that most of the coins will be used for ‘’ecosystem development’’ to prop up to the sponsors. These coins will later get sold on the exchanges and will increase the supply of TRX and will also suppress its price.

According to the original whitepaper, the allocation of the 100 billion TRX supply coins was supposed to happen as follows: 40 billion in the public ICO, 35 billion for the Tron foundation, 15 billion for private token offering and 10 billion for the payment to Peiwo corporation. After the ICO mania, Tron raised $70 million and in the meantime, the private token offering and payments are still unclear to this day.

The CEO Justin Sun and founder of Tron burned 1 billion tokens from the Tron Foundation as a celebration of the launch of the mainnet and separated the platform from the original ERC20 ETH token. A week later, the funds were split into 1000 addresses in order to reduce the risk of loss that can occur from hacking. Since a third of TRX’s supply was unlocked, the performance of the coin could get worse because Tron lost 39 percent against the dollar and 67 percent against Bitcoin. Some of the reasons for the price drop could be the worsening relationship of Sun with the Chinese authorities and his overhyping of the project’s developments which later turn out to be non-existent.