After the decision by the US Federal Reserve, Tron fell much more than other major coins (by 16% from its peak). However, the coin is known for having less volatility compared to other major altcoins.
✔️Reason for the drop The Securities and Exchange Commission (SEC) accused crypto entrepreneur Justin Sun and three of his companies, including Tron Foundation Limited, which deals with digital asset networks, of engaging in an unregistered offering and sale of two “cryptocurrency securities,” and also accused eight celebrities of violating securities laws by promoting related tokens.
✔️Fake volumes According to the SEC, Justin Sun tried to artificially inflate TRX trading volume through a fake trading scheme, making his employees “participate in more than 600,000 fake TRX transactions” between two crypto trading platform accounts that he controlled. According to the lawsuit, Sun’s Tron Foundation employees executed trades, BitTorrent and Tron funds controlled accounts, and Rainberry employees transferred funds for trading.
✔️Charges against eight celebrities The agency also accused eight celebrities of “unlawfully promoting” TRX and BTT without disclosing that they were being paid. These celebrities include actress Lindsay Lohan, media personality Jake Paul, rapper DeAndre Cortes Way or Soulja Boy, singer Austin Mahone, and four others. Most of them have already settled this issue.
