TRX Bagholders Must Get Ready For More Fireworks As Tron Supply To Shoot Up On New Year’s Eve
- 33 billion TRX worth $450 million to be released in the market on January 1st, 2020
- This 50% of TRX circulating supply could lead to a drop in its price
- “People are realizing that many of the altcoins had exaggerated valuations beyond what the projects were worth,” says analyst Mati Greenspan
Tron Foundation is going to be releasing a whopping 33 billion TRX, worth about $450 million in the market on New Year’s Day.
These 33 million were locked by the non-profit organization after Tron made its shift from Ethereum blockchain to its mainnet. A few days before its Independence Day on June 25th in 2018, Tron Foundation CEO Justin Sun, who is the founder of the cryptocurrency TRX announced a token burn of 1 billion TRX.
At that time the organization burned 50 million USD that Justin Sun said was “the most amount of money destroyed in human history.”
At the mainnet launch, out of the total supply of 99 billion TRX, about 33 billion TRX held by Tron Foundation were locked in 1000 addresses of TRON Mainnet. These TRX would have been then unlocked on January 1st 2020, which is just about here.
A Dump Incoming?
33 billion TRX is about 50% of the current circulating supply of 66.6 billion TRX in the market, increasing the supply of TRX in the market.
While the supply will see an increment of 50%, the demand remains the same, which has been slow in the second half of the year. This means the price could see a fall.
At the time of writing, the 12th largest cryptocurrency with a market cap of $910 million is currently trading at $0.0134. TRX registered negative returns of 30% on a year-to-date basis and is also down 96% from its all-time high of $0.302.
However, TRX is not the only which is a bad performer, a vast majority of altcoins are crashing hard. This Mati Greenspan, founder of investment firm Quantum Economics says is because the “entire industry is returning back to Bitcoin” during this current period of “great consolidation.” He added,
“People are realizing that many of the altcoins had exaggerated valuations beyond what the projects were worth.”
Amidst this bad news, however, Sun has come up with another announcement of an announcement that he says would be good for TRX and the Tron ecosystem. He tweeted,
— Justin Sun (@justinsuntron) December 29, 2019