On Wednesday, Tron wrote on Medium that the first stage of the TRX buy-back plan that was announced in July this year is over. The platform is about to start the second phase of it.
Tron is buying back TRX
As the Tron system has been quickly expanding this year with new projects successfully launched (BTFS, Sun Network, BT Speed and BLive, as well as the release of dApp WINk on Binance), Tron has been following its plan regarding buying back TRX from the market.
The Medium article reports that so far the buy-back initiative has been successful and exceeded the market expectations.
The total amount of TRX that has been purchased back from the market is over 723 mln on an average price of $0.28 per TRX with $20 mln spent.
At press-time, TRX is trading at $0.0156, as per CoinMarketCap.
As per the Medium source, the first stage of the buy-back program lasted from May until August this year, with TRX bought back via Binance, Huobi and other major crypto exchanges.
Tron promises that the beginning of the second buy-back phase will be announced soon.
Why Tron is buying TRX back
Explaining the goal of the initiative, the Tron team cites several reasons. Among them is the fact that the community says TRX is largely undervalued, many are complaining about the low cost of TRX and it being moved to place #14 from #10 on CoinMarketCap recently.
The buy-back and then possibly locking or burning those coins would in theory help push the TRX price up, since the amount of TRX circulating in the market will decrease.
Binance, Ripple and Tron
Binance follows the same strategy by regularly burning BNB coins. This is believed to be one of the reasons why Binanace Coin manages to remain inside the top-ten list with a high market price.
Ripple is doing things the other way round, by conducting quarterly sales of huge XRP amounts (the recent one totalled 1 bln XRP).
Many in the Ripple community name this as the factor that prevents the XRP price surge.