Bitcoin | BTC $ 6517.98 1.72%
Ethereum | ETH $ 302.14 2.93%
XRP | XRP $ 0.35 7.12%
Litecoin | LTC $ 58.23 2.84%

Tron Foundation Locks Up 33.25 Billion TRX, Further Guaranteeing Circulating Supply

3,665

It is no secret that there has been lingering questions about the massive supply of Tron (TRX) tokens in the crypto markets. The initial total supply before the Tron Foundation burnt 1 Billion of its own TRX during the project’s Independence Day, was 100 Billion. With the reduction of the burnt coins, this total supply figure is now 99 Billion. Taking into consideration the circulating supply of 65.75 Billion TRX, there was another 33.25 Billion that was still held by the Tron Foundation.

It is with the latter 33.25 Billion TRX that the Tron Foundation has announced that they have locked them up in 1,000 addresses inside the Tron MainNet. This way, the Tron Foundation has distributed the funds over these addresses further reducing the risk of losing all the coins if one address was compromised. The team has even provided more information as to the identity of these addresses as well as plans of creating a query tool where TRONICS members can constantly check and search these addresses.

But why lock up 33.25 Billion TRX?

Firstly, this act by the Tron Foundation answers the aforementioned question of supply predictability. Crypto traders and TRX HODLers now know that at any one time, there are 65.75 Billion TRX in circulation. The remaining 33.25 Billion are locked away till January 1st, 2020. With this supply predictability comes investor confidence.

Secondly, with the said investor confidence and a working product in the form of the Tron MainNet, the value of TRX is sure to go up with time as anticipated by Tron believers since the project was initiated in the crypto verse. Many TRX HODLers believe that the token is their one way ticket to owning a Lambo as well as having an early retirement. One needs only reference the market response to Ripple locking away 55 Billion XRP in escrow back in early December. Less than a month later, the value of XRP had skyrocketed from $0.22 to $3.82; exhibiting 1,600% in gains.

In conclusion, the Tron Foundation has made one more step in the right direction and with respect to guaranteeing the circulating supply of TRX until January 1st, 2020. This means that crypto traders can go about their business in investing in TRX without any fear of the circulating supply suddenly increasing and consequently crashing the value of the digital asset due to an over supply.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.
Follow us on Twitter | Telegram | Facebook
loading...

Get real time updates directly on you device, subscribe now.

Comments