NAIROBI (CoinChapter.com)— Tron (TRX) slid 7% in 24 hours, trading at $0.1949, following founder Justin Sun’s $30 million investment in Donald Trump’s crypto initiative, World Liberty Financial (WLFI). The move makes Sun the largest investor in the project. However, it also raises questions about Tron’s direction amid ongoing regulatory scrutiny and market volatility.
Justin Sun’s Investment Sparks Mixed Reactions
Justin Sun announced his investment on Nov. 25 via a post on X. He described it as a step to promote “innovation” and align Tron with Trump’s “Make America Great Again” narrative. The WLFI token, priced at $0.015 each, has struggled to gain traction since its launch in mid-October. Restricted to non-U.S. persons and accredited investors, the tokens are nontransferable, limiting their appeal.
Before Sun’s buy, the project had raised only $20 million of its $300 million target. Sun’s involvement brought the total to $52 million. This allowed the project to surpass the $30 million threshold required to activate revenue-sharing with Trump’s company, DT Marks DEFI LLC. According to WLFI’s “White paper,” Trump and his family are entitled to 75% of net revenues beyond the $30 million mark.
Market Data Reflects Bearish Sentiment for TRX
TRX’s 7% drop comes amid broader market concerns and regulatory pressures on Tron. Notably, in March 2023, the U.S. Securities and Exchange Commission (SEC) sued Sun. The SEC alleged that there were unregistered securities sales and wash trading to manipulate TRX’s price. Sun denies these allegations.
Coinglass data revealed a decline in Tron (TRX) trading activity, with volume dropping 35.73% to $273.77 million and open interest falling 12.47% to $129.26 million. The long/short ratio stood at 0.9693, reflecting slightly bearish sentiment. However, Binance’s 1.7064 ratio for TRX/USDT suggests optimism among top traders.
TRX has gained 84% year-to-date but remains 15% below its January 2018 peak of $0.23. Sun’s recent purchase of WLFI tokens, coupled with his headline-grabbing $6.2 million acquisition of banana-themed artwork, has drawn criticism for overshadowing Tron’s blockchain developments.
Above all, Justin Sun’s high-profile investment highlights his strategic yet controversial approach. While aligning Tron with Trump’s crypto ambitions could boost visibility, ongoing regulatory scrutiny and market volatility also continue to weigh on TRX.
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