Bitcoin

El Salvador and Tron DAO Reserve Each Buy 500 Bitcoin Amid Crypto Market Dump

  • President Nayib Bukele said El Salvador bought an additional 500 BTC on Monday
  • The Central American Jurisdiction previously approved Bitcoin as legal tender in 2021
  • Justin Sun’s Tron DAO Reserve also purchased 500 BTC during Monday’s market tumble
  • The massive buy could be earmarked for Tron’s USDD algorithmic stablecoin reserve

El Salvador announced a massive 500 Bitocin purchase on Monday (May 9, 2022) as the cryptocurrency market took a nosedive. 

President Nayib Bukele disclosed the huge BTC acquisition via a tweet revealing that the country spent an estimated $15,372,000 in a bid to bolster state coffers and supposedly reinforce belief in the world’s leading cryptocurrency.

The Central American jurisdiction has become somewhat synonymous with the top digital token since President Bukele announced the Bitcoin bill back in 2021. The legislature eventually approved BTC as legal tender later in November that year.

SimpleFX
SimpleFX

Despite stiff opposition from the International Monetary Fund (IMF) and the US government, President Nayib Bukele has continued to defend the country’s decision to adopt crypto on a national scale. 

Notably, El Salvador’s big buy complimented the popular ‘buy the dip’ narrative that promotes purchasing crypto tokens when the markets are down. On Monday, Bitcoin prices were reportedly more than 50% below all-time high levels, and altcoins also showed significant downtrends. In addition, Monday marked one of the largest liquidations events in crypto history as data from CoinGlass showed that over $1 billion liquidations calls were recorded over a 24-hour period.

Justin Sun’s Tron DAO Reserve Mirrors El Salvador’s 500 Bitcoin Buy

Following President Bukele’s announcement, Tron Blockchain founder Justin Sun revealed that the Tron DAO Reserve also bought 500 BTC tokens, albeit at a slightly high price on Tuesday. 

As the reserve exists to support Tron’s recently launched algorithmic stablecoin USDD, the huge buy could be designated to support the coins peg to the US dollar.

The move comes shortly after Terra’s stablecoin UST depegged and triggered panic across the crypto community after the coin fell below $0.75 on exchanges.

However, CEO Do Kwon tweeted plans to leverage the protocol’s large BTC reserves in a bid to restore the coins peg. As of the time of writing this report, UST is back above $0.90 per data from CoinMarketCap.