Decentralized blockchain platform Tron is set to unleash $2 billion to address its token’s short-selling following its recent decline.
Source: The Block Crypto
TRX is down 15.99%, USDC is up 0.05%, and USDD is down 1.18%.
Tron Founder Justin Sun took to Twitter to announce that the decentralized autonomous organization will release $2 billion to fight shorting of TRX on Binance, which has reached a -500% annual percentage rate.
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
Sun believes bets against the token will not last for even 24 hours, warning that a short squeeze is coming. He noted that some 700 million USDC had been injected into the reserves to defend its USDD peg.
Over the weekend, the Tron DAO Reserve announced the acquisition of $50-million worth of Bitcoin and TRX to overcollateralize the USDD and to ensure a minimum of 130% of the total amount in insurance.
Tron earlier said it would provide real-time updates on the collateral ratio on the official website of its DAO.