The Tron Foundation is going to unlock 33.25 billion Tron (TRX) on New Year’s Day, which is only hours away. At that point the Tron Foundation will be able to do whatever they want with these coins, which are worth $442 million at this time, which is roughly half of the value of the current Tron (TRX) market cap of $887 million.
These 33.25 billion Tron (TRX) were locked up in July 2019 when the Tron Mainnet was launched, i.e. when Tron (TRX) moved from the Ethereum (ETH) blockchain to its own blockchain. The coins were locked in order to keep the Tron (TRX) market stable.
Tron Founder Justin Sun is already hinting that at least some of these unlocked coins will be immediately dumped in order to facilitate an acquisition for BitTorrent.
It remains to be seen what exactly will happen in the weeks and months after these $442 million of tokens are unlocked. To put things in perspective though, CoinMarketCap estimates that the entire crypto space has around $500 million of liquidity, and certainly the liquidity of Tron (TRX) is only a small fraction of that.
Therefore, the unlocking of this $442 million of Tron (TRX) theoretically could wipe out the value of Tron (TRX) if dumped all at once. In the best case scenario Tron (TRX) will see significant losses but will remain in the top 20 on CoinMarketCap, as long as the coins are dumped relatively slowly and carefully.
Regardless of what exactly happens, Tron (TRX) traders and investors are put at a serious disadvantage due to this situation, and wealth will essentially be transferred from traders and investors to the Tron Foundation.