VYGVF - Tron Founder Justin Sun Claims He's 'Ready to Serve' Struggling Crypto Companies
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Crypto brokerages and lenders have faced heavy volatility in recent weeks, headlined by the Chapter 11 bankruptcy filing of Voyager Digital (OTCMKTS:VYGVF). Now, Justin Sun is stepping in, announcing that he is ready to spend $5 billion on crypto firm acquisitions. Sun is the founder of Tron, a decentralized blockchain system that hosts the TRX (TRX-USD) token.
In April, Sun announced that Tron would launch a new algorithmic stablecoin called USDD (USDD-USD). TRX will be used to help the stablecoin remain pegged to the U.S. dollar. Sun claimed that the algorithm will ensure that USDD stays pegged “regardless of market conditions.” The Tron decentralized autonomous organization (DAO) will also provide USDD with custody reserves of up to $10 billion of “liquid assets” to serve as the stablecoin’s collateral backing.
With that in mind, let’s get into the details of Sun’s generous $5 billion offer.
Justin Sun Willing to Spend $5 Billion on Crypto Acquisitions
After tweeting out that he is “ready to serve,” Sun stated that “lots” of crypto firms have already reached out to him for financial assistance. He told The Block, “We are actively reviewing it and see what we can do here. We are ready to spend [$]5 b[illion] on helping the industry builder[s] to continue [to] build.”
Sun has already reached out to investment banks to help with potential deals, although he did not disclose which banks. In addition, between 50 and 100 crypto firms have already reached out to him.
Tron’s DAO currently has $2.3 billion in reserves. Sun mentioned that the $5 billion would be a combination of Tron’s money, as well as his own. On the bright side, he added that he believes that the worst of the crypto winter is over: “I think currently the de-leverage process is passed the worst time. So we just need to clean it up and move forward. I don’t think [the] market will be super bullish, of course.”
When asked which companies he was targeting, Sun said that he is looking for both healthy and distressed businesses. Still, he did not mention any specific names.
Celsius and Voyager seem to be suitable acquisitions for the crypto entrepreneur. However, FTX’s Alameda Research is already heavily involved with Voyager, extending a $500 million loan to the troubled crypto lender. Crypto investors will want to look out for future announcements from Sun.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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