Justin Sun's TRON Inc. stock hovers just above $1 Nasdaq minimum

Protos has run multiple stories on Justin Sun's TRON Inc., a company known for selling children's merchandise, but its stock has kept declining.

At present, the share price is barely above the $1 level required to retain its Nasdaq listing.

What is behind the slump, and can TRON prevent a possible delisting?

What is TRON Inc. and what went wrong?

TRON Inc. functions as a treasury company for the TRON cryptocurrency, much like Strategy does for Bitcoin, though without the intricate financial moves.

The firm buys, holds and stakes TRON tokens, and also acquires old intellectual property while selling toys and accessories for children.

The company spends and earns little, but Sun continues to promote it by claiming that its routine small purchases of additional TRON are positive for both the token and the treasury entity.

Despite those buys and the persistent shilling by Sun, the stock has fallen further and now sits just 15 cents above $1.

That matters because if the stock ends below $1 for 30 straight trading sessions, a 180-day compliance window begins, after which the stock becomes eligible for delisting from Nasdaq.

Nonetheless, TRON and Sun have some options remaining.

Delisting in the near future is improbable

Although TRON's stock has dropped 50% from its peaks earlier this year, the situation is not as dire as it appears; a reverse stock split could be used to push the price above $1 for a time.

Other delisting triggers are not a concern either, since the market capitalization and financial metrics are far from the thresholds that would activate delisting procedures.

Recently, TRON struck a deal with Clear Street to act as a broker to sell TRON shares to its customers. Whether this will help the troubled firm remains uncertain.

According to its public wallet address, TRON Inc. holds slightly more than $250 million in TRX tokens.

Consequently, the company's market cap, exceeding $500 million, is roughly twice its holdings.