Published on juni 28, 2024, 12:24 am
Image source: Fox News
```json [ { "TLDR": "Tron's TVL dropped to $7.6 billion, hitting a six-month low, while TRX price surged by 9.5% in June. Justin Sun transferred over $21 million worth of TRX to Binance, raising concerns about sustainability. Major investors withdrawing funds and JustLend deposits declining by 15% added to worries. Challenges with stablecoin providers like Circle discontinuing support for TRC-20 versions were noted. Allegations from the SEC regarding unregistered securities sales and wash trading accusations against Justin Sun were also highlighted." } ] ```
Tron’s value locked experienced a significant drop to $7.6 billion, marking a six-month low while the TRX price surged, attracting scrutiny by Cointelegraph. TRX, Tron’s native token, surged by 9.5% in June, surpassing competitors SOL and ETH. Notably, TRX’s increase coincided with a substantial transfer of over $21 million worth of TRX to Binance by Tron founder Justin Sun, sparking debates on the sustainability of TRX’s rally above $0.12.
Data from Arkham Intelligence revealed Sun transferring 173.8 million TRX to Binance on June 27 amidst Tron’s TVL dipping to $7.5 billion on June 26 per DefiLlama. This decline suggested that despite TRX’s upsurge, major investors were withdrawing funds from the ecosystem. Concerns were further raised as 75% of deposits concentrated in JustLend dropped by 15% within a month.
Exponential.fi shed light on the alarming fact that JustLend’s BTC pool had no yield on the $5.3 billion deposited, indicating indirect beneficiaries may profit significantly rather than regular users of the application due to high risks involved in collateral and security mechanisms used.
Despite challenges faced with stablecoin providers like Circle discontinuing USDC support for TRC-20 versions in Feb. 2023 due to safety concerns, Ethereum continues to lead its ecosystem while Solana remains notable with applications such as Raydium and Jito standing out.
In April 2024, allegations surfaced from the United States Securities and Exchange Commission regarding unregistered securities sales through Tron and BitTorrent tokens by Justin Sun’s companies alongside wash trading accusations against Sun himself.
Although TRX has shown resilience compared to its counterparts SOL and ETH over the last month amid decreasing TVL for Tron and potential selling activities linked to Sun’s wallets, uncertainties loom over its ability to sustain the $0.12 mark effectively showcasing a less-than-ideal trend alignment with Tron’s network growth.
Disclaimer: This content is not intended as investment advice or recommendations but rather an informative piece for readers to conduct their research before making any financial decisions.
Original article posted by Fox News
