(Twitter) Tron founder Justin Sun has moved with speed to deploy $2 billion worth of reserves as short-sellers circled the token.
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 said that the so-called funding rate for shorting TRX on Binance reached 500%.
The deployment happened after the TRX token crashed more than 16% overnight to Monday morning. Tron’s stablecoin USDD also declined to $0.98.
Market fears over Tron’s native token and stablecoin have been sparked by the collapse of the near-carbon copy of Terra’s UST.
The reserve backing comes just two days after Tron DAO Reserve added $50 million worth of Bitcoin and TRX.
Sun promised to be providing real-time updates of the collateral ratio on its DAO system from June 5. The ratio on Monday was at 280%.
TRXUSD is down -16.90%.
