Justin Sun, the founder of the TRON protocol – one of the largest blockchain networks – has said he’s ready to join Sam Bankman-Fried in offering financial support to crypto firms that are struggling with liquidity issues.
Sun said he could spend up to $5 billion on acquisitions after several companies have reached out to him for help, and has engaged with an investment bank to advise on potential deals.
“Our interest is platforms with a large user base, both CeFi and DeFi platforms,” Sun said. Tron DAO has around US$2.3 billion in reserves, according to its website. Sun said that the $5 billion would be a combination of Tron’s money, as well as his own.
Amid the crypto industry’s liquidity crisis, FTX has become something like an emergency lender, coming to the rescue of BlockFi, providing it with a US$250 million revolving credit facility. Bankman-Fried founded quant trading shop Alameda Research also issued Voyager Digital (VOYG) a revolving line of credit.
Binance’s Changpeng Zhao has also said he is actively looking for ways to help struggling crypto companies, either through loans, minority investments or majority acquisitions.
BTC is currently hovering at its lowest levels since March 2020 and is struggling to climb back up. But Sun thinks the worst is over for the industry.
“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,” Sun said.