Is this the first advertising-stunt crash of the crypto winter?

Not all crypto falls are the same. Most are predictable accidents, although some can be constructed according to their picture.

to protect the entire blockchain industry and the cryptom market, tron ​​dao reserve will deduct 2.5 billion #Trx From the binanz.

-Tron dao-reserve (@trondaoreserve) 15. June 2022

This is Tron, a blockchain network in the Ethereum model. It contains a token worth $ 700 million, USDD, which has been one of the most obvious crypto targets in the past few weeks.

USDD (introduced on May 5) is a decentralized algorithmic stable coin that uses an almost identical arbitrage mechanism such as Luna/Terra by Do Kwon (which collapsed on May 10). TRONS WITEPAPER for the coin was deleted and rewritten this month to add a promise of a "guaranteed oversurance using various mainstream cryptocurrencies". (The old version is on the web. Archive.)

USDD finally broke the black Peter last week:

Justin Sun, the founder of Tron, who is always online, has the guilt attributed to the native trx of the network of the network.

Refinancing sentence of the empty sale #trx @Binance is negative 500% effective annual interest. @trondaoreserve will insert 2 billion USD to combat them. I don't think you can last 24 hours. Short Squeeze comes. pic.twitter.com/vrexm6uk70

- He Justin Sun 🅣🌞🇬🇩 (@Justinsuntron) 13. June 2022

Sun is crypto's stubborn advertising. A vanity website is heavily based on his role as an "ambassador and constant representative at WTO in Grenada", which enabled him to talk about blockchain at the WTO Minister Conference last week. (Tourism, which was more than half of the Grenadas before pandemic, was not mentioned.)

In 2019, Sun paid $ 4.6 million to eat with Warren Buffett, then canceled and gave Buffett a charged phone Bitcoin . A year later, he sucked the exhaust gases of the NFT high-art train while identifying himself as a meme-stock pocket holder.

Every entrepreneur who is so dependent on self -promotion becomes susceptible to the law of falling return. So it was at Sun's previous attempts to strengthen trust, with reserve injections no more than short -term relief.

The reaction of the market to a deduction of deposits for the holiness of crypto was much more positive:

This is because the reserves specified are not the problem of tron. The falling value of its local token is basically irrelevant for everyone out of Hodlern, since the USDD stable (on paper) is more than fully secured by trons USD 1 billion coin and $ 140 million of tether reserves.

trons problem is that it is a lobster pot. There is no redemption mechanism for USDD. As soon as they are in there, there is no other way out than trading on the secondary market.

The only offered arbitrage option for USDD Hodler is to exchange the tokens for newly shaped TRX worth a dollar. Sun and the great advice from Tron are the only ones who have direct access to the reserves. So you can choose whether you want to restore the pen or switch the asset on and off that produces the most noise.

pulling out the trx inserts from Tron from Binance therefore looks like an attempt to choke the liquidity in the crypto equivalent of a very shortened small cap. It is not a terra/luna-arbitrage encryption, it has much more in common with the simple manipulation of supply and demand in the meme stock style.

However,

sun was very interested in making the shorters think:

use more capital - stable guys

- He Justin Sun 🅣🌞🇬🇩 (@Justinsuntron) 14. June 2022

use more capital - stable guys

-MACH KWON 🌕 (@stabfukon) May 2022

Read more

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The many escapes from Justin Sun - The Verge