33 billion TRX tokens, worth about $445 million by current prices, were unlocked on January 1. These tokens could soon enter the market and lower the price of TRX, which is already quite low. The tokens were locked in December 2017, six months before the Tron mainnet was launched. The reason why the Tron foundation locked up the funds was to protect the interests of its supporters.
However, these funds are now available to the foundation, which is now the largest owner of TRX. At current market prices, these tokens are valued at around $445 million. Tron’s official channels have not made much mention of these tokens. This is due to the massive impact they could have on the price of the coins. Some have speculated that Tron might decide to lock up the funds or burn them to help save the price of TRX.
The most likely scenario is that most of the coins will be used to develop the Tron ecosystem as well as to help boost existing projects. With time, these tokens will gradually be released to the market, keeping the price of Tron suppressed. During its ICO, Tron managed to raise $70 million from its public sale. However, the private sale details were never revealed to the public.
In June 2018, Justin Sun, the Tron CEO, burned a billion TRX from crypto wallets of the Tron Foundation. This was in celebration of the launch of the Tron mainnet. The remaining funds were split amongst 1000 crypto addresses, helping to reduce loss from hacking. However, this also makes it harder to track what is happening to the funds.
TRX has not been performing very well. In 2019, the token lost 39% of its value to the dollar. However, it performed even worse against the BTC, losing nearly 67% of its BTC value. There are various reasons why TRX might be performing so poorly. These reasons include the various scandals surrounding the Tron Foundation and its CEO. For instance, the relationship between the Tron Foundation and the Chinese government has deteriorated. Additionally, Sun’s much-hyped lunch with Warren Buffet has not yet materialized.