Tron founder Justin Sun tweeted that a solution was being put together with FTX to “initiate a path forward.”
He did not offer any more details and analysts are skeptical of whatever the plan is to rescue FTX. The TRON network’s USDD token also depegged, putting stress on the network.
Justin Sun had previously said that he was willing to spend up to $5 billion to help crypto firms.
Tron founder Justin Sun is the latest to offer a solution for the FTX exchange. The crypto entrepreneur said on Twitter that a solution was being put together with FTX to initiate a path forward. He also revealed that TRX trading on FTX had resumed, with withdrawal services being worked on.
Sun did not offer any information on what the solution was. The crypto community and market analysts are curious as to what Sun’s solutions might be, and wonder if it is just a marketing stunt.
Binance was going to acquire FTX, but backed out citing the latter’s financial issues and investigations from agencies in the United States. Sun’s tweet came out only hours after Binance announced it was backing out of the deal. Binance CEO Changpeng Zhao said it was a sad day but that the exchange tried.
The development adds to the drama surrounding the collapse of FTX, which has set the markets off on a downward spiral. The FTX token has fallen to $2.73, down nearly 97% from its all-time high.
It’s still very early days in this saga of the market, and the full scale of what has happened at FTX is not yet known. There’s no guarantee that Sun will end up okaying the revival plan for FTX and market enthusiasts will have to wait to see if the plan will go through.
Crypto Community Thinks It’s a Publicity Stunt
Justin Sun, reminiscent of what FTX CEO Sam Bankman-Fried did earlier this year, said that might spend $5 billion to save crypto firms. Now FTX is one of those companies that need saving and could have a shortfall of as much as $8 billion. In his own words, he said TRON was “ready to serve.”
However, not everyone is convinced that Sun will be able to pull this off. The Tron network is experiencing trouble of its own, with the USDD stablecoin having depegged. The question is whether he has the resources to help the crypto ecosystem when the stablecoin is attempting to recover.
This is not the first time that Sun has made a sensational remark like this. In early October, the Tron founder tweeted that he was interested in buying the assets or shares of beleaguered global investment bank Credit Suisse.