Does Justin Sun really want to save the crypto market?
Since the collapse of the failed crypto institute FTX, many stakeholders in the crypto market have been curious about what would become of the company’s remaining digital assets.
Data shows that as of the 31st of August, FTX holds the following in its vaults:
Now, TRON founder Justin Sun tweeted to express his interest in buying FTX’s remaining crypto, saying it is to “reduce their selling impact on the crypto community.
However, Sun has been at the center of multiple instances of controversy in the crypto world. His company’s native token TRX, which caps at $7 billion has lost 74% of its market value since its ATH in early 2018.
If we take Sun’s expression of interest at face value, then the purchase would certainly help the market avoid a crash that would drive the price of several cryptocurrencies (not including TRX).
Granted, the sale of $560 million worth of BTC wouldn’t really influence the Bitcoin market significantly. However, the sale of over $1 billion in SOL would see the token plummet in price.
On the other hand, a more pessimistic view would look at Sun’s offer as an attempt to control the market. As mentioned earlier, TRON’s token is not performing well in the market.
Hence, holding a controlling stake in another crypto token, especially SOL (which is currently performing well), would give Sun the power to influence the market in his favor.
Sun has been at the center of well-known controversies in the crypto market. In March, Justin Sun along with actress Lindsay Lohan and rapper Soulja Boy were charged with allegations of fraud by the US Securities and Exchange Commission.
Sun and his companies Tron Foundation, BitTorrent Foundation, and Rainberry were also accused of artificially inflated trading volume.
Justin Sun and FTX did not immediately respond to a request for comment.
Where’s Sun’s Money Coming From?
According to Coindesk, Justin Sun is one of the biggest customers of Valkyrie Investments. Research shows that Sun had more than $580 million of BTC kept with the Valkyrie, which amounts to 90% of the money at Valkyrie’s largest division, Valkyrie Digital Assets LLC.
If that’s the case, the purchase of FTX’s remaining assets would mean Sun would become a Bitcoin billionaire.
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