Tron has just announced that it intends to buy back $20M worth of TRX to “promote community activity” and “market stability.” It is by far the largest TRX buy-back to date.
Tron has just released its new plans to buy-back its own tokens. The project also unveiled its new holding plans.
The announcement specified that, firstly, Tron will be conducting the largest buy-back it has ever done. In total, $20M of TRX will be purchased on secondary markets in several batches. This process will last for a year.
Secondly, the holdings of the Tron Foundation will be unlocked starting on June 1st, 2020. As of the announcement, the Foundation has no specific plans for these unlocked tokens. However, it stresses that it will continue to buy up TRX on the secondary market to prove to investors that it has full confidence in its ecosystem.
The buy-back plan is likely a response to the chaotic market movements in light of Bitcoin’s move upward. Coupled with Justin Sun’s planned dinner with Warren Buffett, Tron is trying to keep up its momentum. With the buy-back program, it hopes to instill some confidence for those still uncertain about their TRX investments.
The news also appropriately comes on what is called “Tron Independence Day.” It is the first-year anniversary of Tron’s own native blockchain. Before June 25th 2018, TRX was an ERC-20 token but has since migrated to its own chain.
This year, Justin Sun celebrated by retweeting his old tweet from 2018 where he claimed that Tron will someday eclipse Ethereum. Sun is known for poking fun and sometimes outright attacking the leading smart contract platform.
— Justin Sun (@justinsuntron) June 24, 2019
Since Tron’s so-called “Independence Day,” around 99.1% of all ERC-20 TRX tokens have been migrated to MainNet.
Do you believe Tron’s buy-back program will have a visible impact on TRX’s future price movements? Let us know your thoughts in the comments below.
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