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  • TRON publishes a statement explaining the incident.
  • TRX.USD remains under pressure as the market is cautious.

TRON (TRX) has recovered from Monday’s low of $0.0334 to trade at $0.0341 by press time; however, the upside momentum is slow as traders are in no hurry to return to the market after a show in Tron’s offices in Beijing. While the initial allegations that the police raid the company’s offices proved to be false, the market tends to remain cautious and adopts a wait-and-see approach towards the situation.

According to the official explanation published by TRON Foundation, the police arrived at the office to protect the employees from an angry crowd that accused Tron’s Founder Justin Sun in fraud. The fraudsters borrowed the Chinese version on Tron’s name to lure investors into their scam.  

Read more about it there.

“TRON officials expressed their sympathy and understanding for those who had been deceived; however, the company strongly condemns acts of violence that may be perpetrated as a result of events that are not in its direct control. TRON has, on multiple occasions, warned investors of potential pyramid schemes or illegal activities that attempt to defraud investors under the guise of fast riches using blockchain technology,” the company wrote in a blog post.  

The company emphasized that it had warned investors about the potential fraudulent scheme when it had learned that someone had been using their name.

Meanwhile, looking technically, TRX/USD is locked in a tight range limited by SMA100 (Simple Moving Average) at $0.03425 and SMA200 at $0.0334, which coincides with the recent low. A sustainable move outside these barriers will define the short-term momentum for TRX.

TRX/USD, 4-hour chart