- El Salvador’s president Native Bukele reveals the country will purchase 1 BTC every day starting tomorrow.
- TRON’s Justin Sun adds that TRON DAO will echo the country’s initiative.
President of El Salvador Nayib Bukele and Justin Sun, founder of blockchain decentralized autonomous organization (DAO) ecosystem TRON, revealed the super bullish strategy they intend to adopt to purchase Bitcoin (BTC) despite recent volatile price action.
In a Nov. 17 tweet, Bukele revealed that El Salvador will start buying 1 BTC every day starting the next day. In response, Justin Sun said that TRON DAO Reserve will echo the initiative by also buying 1 BTC every day starting on Nov. 18. He wrote;
“We echo Nayib Bukele’s initiative in buying Bitcoin daily. We will also buy one Bitcoin everyday starting tomorrow!”
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 17, 2022
This is not the first time Sun has matched President Bukele’s BTC dip-buying initiatives. Back in May, TRON DAO Reserve bought 500 BTC at an average price of $31,031 (for a total of $15.5 million) to match a purchase made by the South American country’s president.
El Salvador has remained the only sovereign nation to adopt Bitcoin as a legal tender since passing the bill into law in 2021. Since then, El Salvador has accumulated around 2,381 BTC. According to a Bloomberg report, the BTC holdings purchased at an estimated total price of $105 million, are currently worth roughly $41.5 million—losing more than 60 percent of their value.
Bukele’s latest tweet, which does not state how long into the future the daily purchases will continue, confirms that the president is not giving heed to multiple criticisms that El Salvador’s adoption of BTC and multiple purchases of the cryptocurrency using state funds have garnered.
TRON DAO Reserve well cushioned against market volatility
The TRON DAO Reserve meanwhile will be adding its Bitcoin purchases to collateral backing the TRON DAO ecosystem’s algorithmic stablecoin, USDD, or decentralized USD.
Per data from the ecosystem tracker USDD.io, the stablecoin has a total collateral of over $1.4 billion backing around $725 million worth of issued USDD. This comprises cryptocurrencies including TRX, BTC, USDT, and USDC.
In an update last week, TRON DAO revealed that it would be purchasing $1 billion worth of USDT to help it “safeguard the overall blockchain industry and crypto market.”
Meanwhile, the price of BTC is trading at around $16,570, down 1.31% in the last 24 hours according to our data at the time of writing.