Justin Sun Says Tron May Be The Next Target of Market Manipulation

Justin Sun

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.”

Market Manipulation

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.

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.

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.

Author: Jinka Kamma

Jinka Kamma is passionate about the prospects of blockchain and the freedom cryptocurrencies afford people across borders. He holds small amounts of bitcoin and tether.