The Tron co-founder, Justin Sun says that Tron Reserve will be deployed to counter any move by market manipulators to cause a downturn in the value of TRX. Sun made the announcement via a Twitter post on May 11, citing an increased rate of shorting for TRX at Binance.
$2 Billion Defense Fund
According to Sun, $2 billion will be deployed to “fight them”. Even though he did not mention exactly the entities that Tron Reserve intends to counter, Sun said that TRX may be the next target of attack after LUNA.
LUNA, the Terra network internal currency fell by 98.6% in an unprecedented drop after its stablecoin pegged to the United States dollar, depegged.
The full text of Sun’s post:
“Funding rate of shorting #TRX on @binance is over 100% APR. It seems that TRX is the next target after LUNA. @trondaoreserve will deploy 2 billion USD to fight them.”
In a reaction to the tweet, some of Sun’s followers faulted his decision to reveal the defense strategy that the Tron ecosystem plans to deploy against possible manipulation.
Of course you hit Luna well to restore and protect her self image, you also got a lot of BTC from Luna’s hand, also a nice plan to put the market bearish, who’s to blame 😂
— Bloody35 (@Bloody352) May 11, 2022
A user @Bloody352, wondered how Sun knew that the market was being manipulated. He alluded that he may be a part of it if LUNA was dumped to near zero.
According to @doaan01, Sun may just be “starting a war” with his “thin money”. In a tweet, which he tagged the Binance CEO, he wrote:
“What is this manipulating,are you happy that this man is starting a war on the market with his 2 billion thin air money, is this the future? and are you happy that Luna goes to 0? Do you think people can hold to 0? … if Luna is 0, why would I hold a 0?”
Possibility of A Repeat Attack
Sun’s assertion of market manipulation was confirmed by the co-founder and CEO of Blockstream, Adam Back. Back, who called the Terra network crisis, a “Soros-like attack” said that whoever was behind it will try it again on another coin. He added that it is a good thing for the coin market, since it weeds out unsustainable cryptocurrencies.
Someone made a lot of money via a Soros-like attack on @terra_money LUNA/UST. They and others are going to try that again down the defi/altcoin list. This is actually a good thing for the market as it flushes out silly, unsustainable ponzi-like stuff. Just don’t get caught in it.
— Adam Back (@adam3us) May 11, 2022
The Tron Decentralized Autonomous Organization (Tron DAO) recently launched a decentralized stablecoin, USDD. The stablecoin is currently live on Multichain. Its cross-chain interoperability enables bridging of USDD on BitTorrent, Ethereum, Fantom and Avalanche blockchains.