Justin Sun, the founder of the Tron cryptocurrency network, merely a few hours after the devastating crash of FTX on Wednesday, offered a “way forward” for the exchange and investors in its token, $FTT.
Sun’s offer came after Binance CEO and Founder Changpeng Zhao (CZ) announced that the initially planned acquisition of FTX by Binance would no longer be pursued due to the “latest news reports regarding mishandled customer funds and alleged US agency investigations.”
Hours after the Binance announcement, Justin Sun, in a tweet, commended Zhao’s efforts:
Thanks for trying. It takes lots of courage. https://t.co/ioo2Fr8XNa
— H.E. Justin Sun???????????????????????? (@justinsuntron) November 10, 2022
Sun later made a tweet that was liked by Sam Bankman-Fried, the CEO of FTX, where he stated that he and his team were “putting together a solution” to rescue FTX, giving no further details.
Following Sun’s announcement, trading of $TRX and related assets was restarted on FTX earlier in the day, and $TRX momentarily surged by 4,000%, skyrocketing from 6 cents to a whopping $2.5 on the trading platform.
This is quite suspicious, seeing as the same token still trades at about 6 cents on other prominent exchanges, like Binance and OKX.
Other Tron-based assets such as BTT, SUN, and JST also traded at higher prices on FTX than on other centralized exchanges.
It is evident that this surge came about because of the tweet, and Sun’s announcement through his exchange platform, Huobi, that even if FTX cannot be withdrawn, it will exchange all TRX, BTT, JST, SUN, HT tokens on the FTX platform at a 1:1 ratio.
Later on, he fully hinted at being FTX’s saviour with a meme post on Twitter:
#TRON Ark building is well underway, the modern time crypto voyage for #FTX users to weather the crypto storm. We are on standby backed by the robust global infrastructure @HuobiGlobal Stay safe and dry @FTX_Official ???? pic.twitter.com/tBcZ4uXHU0
— H.E. Justin Sun???????????????????????? (@justinsuntron) November 10, 2022
The prices, however, later corrected to 32 cents some hours after Sun’s tweet. However, there’s still a significant percentage increase in the prices compared to other exchanges. This move allows large traders to liquidate some of their holdings while improving the Tron ecosystem.
Sun’s actions and the developments following them have sparked mixed reactions on Twitter. While some crypto enthusiasts think that Sun might actually be able to assist the FTX community out of its current state of deep debt, others have alleged that Sun is only looking for ways to gain personal benefits for his own company, Tron Network:
TRX on FTX is trading for $1. On Binance it’s $0.06. Users are buying TRX because it’s the only way to exit FTX. Apex scammer Justin Sun has convinced Sam to engage in TRX games to save FTX in his moment of desperation. https://t.co/xSXkxckNg4 pic.twitter.com/Q2xOHStyNf
— Autism Capital ???? (@AutismCapital) November 10, 2022
Whatever Justin sun is doing will end up horribly for anyone involved imo…
Not even taking into account that he is one of the biggest crook in the space…People are converting their funds to #TRX in ftx at 10x the value of other exchanges…
Fucking hell— Devchart ???????????? (@devchart) November 10, 2022
FTX, which went bankrupt and suffered insolvency in the aftermath of findings of fraud and mismanagement of clients’ funds, has now also suspended new users from signing up through the website, which stated that: “All onboarding of new clients has been suspended until further notice.”
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