Tron Founder Justin Sun Wants to Spend $5B to Save Distressed Crypto Firms
Godfrey Benjamin Jul 09, 2022 14:50
While there has been no news of Tron bailing out any crypto firm thus far, Sun said he is willing to commit as much as $5 billion to save distressed crypto outfits
Tron blockchain founder Justin Sun is as empathetic about the current crypto firms that are distressed as he is willing to bail many out.
While there has been no news of Tron bailing out any crypto firm thus far, Sun said he is willing to commit as much as $5 billion to save distressed crypto outfits.
Sun confirmed the $5 billion funds it is willing to spend on to The Block after he tweeted that he is “friends with everyone and are always ready to serve,” a response to a Twitter user who said firms are forgetting Sun as a deep pocket crypto founder at par with the likes of Changpeng Zhao of Binance and Sam Bankman-Fried of FTX Exchange.
According to Sun, quite a number of troubled crypto startups have approached his establishment for help, adding that Tron has tapped the services of an Investment Bank to help in advising the startups to fund. He refused to name the bank it is working with due to the Non-Disclosure Agreement between both parties but said its core interests lie in projects that have a large user base.
"Our interest is platforms with a large user base," Sun said. "Both CeFi [centralized finance] and DeFi [decentralized finance] platforms."
Sun also noted that the companies he would be willing to bail out must have what it takes to withstand the rigors of the due diligence process that must be conducted. Sun believes the ongoing onslaught in the digital currency ecosystem is almost over with the targeted build-up of what is now necessary.
"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," he said.
While Binance’s Changpeng Zhao believes not all projects are worth saving, the likes of BlockFi and Voyager Digital have recently received credit facilities from FTX Derivatives Exchange.
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