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TRON’s Justin Sun Urges TRX As Legal Tender In 5 Nations

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The founder of the TRON ecosystem revealed his intention of legalizing the asset in five nations by this year. According to a Twitter post, the crypto entrepreneur stated this was just the beginning of the wider adoption of cryptocurrency in general.

He then called the plan “ambitious” and is “confident” of turning it into a reality.

Sun, who is also the WTO ambassador of Grenada has emphasized the importance of looking beyond the U.S. for TRX adoption.

“The US is just one country, and while it may be a major player in the crypto world, it’s not the only one.”

Doubling down on the significance of adopting TRON as legal tender, he wrote if the asset is globally accepted, the U.S. will eventually follow suit.

Therefore, as per Sun, the need of the hour is to work on an international scale and forged alliances with governments and businesses across the planet.

Here’s How Being A Legal Tender Will Boost TRON

Sun claimed that the adoption of TRX as a medium of exchange across borders will improve the “legitimacy and usage” of the cryptocurrency. He wrote:

“When a government recognizes a digital currency as legal tender, it gives a sense of trust and security to the general public, making it more likely to invest and use it.”

This, in turn, would attract more businesses to start accepting TRX as a means of payment, thereby boosting the cryptocurrency’s usage, Sun explained.

The latest news comes after the TRON Founder, revealed on January 24 that St. Maarten is eyeing to embrace the asset.

Saint Martin, also known as the Lesser Antilles, or is a group of islands in the northern Caribbean Sea that are part of the Kingdom of the Netherlands.

For those new, TRON is a decentralized open-source blockchain network that enables users to easily communicate with one another and gives them access to a wide range of entertainment apps, such as images, movies, and games.

Recently, its founder Sun was revealed to be in charge of Singapore’s Huobi exchange, and not simply as a member of the Global Advisory Board.

The Singapore-based crypto exchange released a blog addressing some of the rumors that were circulating at the time, TronWeekly reported.

TRON [TRX] Drops Over 10% Amidst Huobi & Justin Sun FUD

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Justin Sun, the founder of TRON and a Huobi adviser, finally acknowledged Huobi layoffs in a text message to Reuters. Its native token, TRX slid down by over 10% in a span of just 2 days and is currently trading at $0.05.

Twitter was rife with speculation on the crypto exchange Huobi after reportedly shutting down internal communications.

This led to community members urging users to withdraw funds with the reasoning that angry staff might resort to “directly rug away user assets or programmers add backdoor Trojan horses” claiming the practice was “not protected by domestic laws.”

All these prompted Huobi consultant Sun to initially dismiss rumors about unsatisfied employees and state that Huobi will “completely respect the legal demands of local employees.”

Additionally, he refuted the reports of alleged insolvency, saying that the exchange’s business growth was “good” and the “security of users’ assets will always be fully protected.”

It all began when Wu blockchain in Dec. 2022 reported that Huobi canceled year-end bonuses and was preparing to cut up to half of its 1,200 staff citing insiders.

Wu, further claimed that several employees objected to the decision to switch from currency to stablecoins for the payment of salaries.

With regards to Sun, the TRON founder recently cashed out $198 million in crypto via a stablecoin issuer, Circle. On-chain data tracker Lookonchain, highlighted the transaction, noting that Sun moved the funds across multiple chains and outlets.

Community members were startled and believed Sun was likely aware of a forthcoming market event.

Even Binance CEO Changpeng Zhao had to chime in by stating that Sun’s recent inflows were perhaps part of deploying BUSD on the Tron network [TRX] or cross-chain swaps.

The TRON founder later clarified in a Chinese tweet that the cash distribution between exchanges was purely routine business collaboration.

Mystery Surrounding TRON Founder’s Valkyrie Investment

Additionally, a number of sources have revealed that the TRON founder, who is a significant client of Valkyrie Digital Assets, has stashed tokens in its vault.

To be more precise, it appears that the funds are in one of Valkyrie’s separately managed account [SMA] offerings, which are intended to introduce cryptocurrency to investors who are more accustomed to TradFi investing vehicles.

This raises the question of whether Sun’s excessive holdings, which are registered in Valkyrie, are an attempt to hide what the market believes to be institutional demand for cryptocurrencies.

After Ethereum, TRON Welcomes Tether’s Chinese Yuan CNHT

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TRON became the second blockchain to onboard Tether’s offshore Chinese Yuan CNHT after Ethereum. The token will debut first on the Bitfinex exchange enabling its users to deposit and withdraw CNHT using the Tron network transport layer from the platform, the blog read. 

TRON founder and crypto billionaire Justin Sun hailed the launch calling it a “big milestone for crypto and Asia community.”

CNH was founded in 2019 and is linked to the offshore Chinese yuan. With the latest support, TRON is now the second blockchain on which it is possible to acquire, trade, and hold CNH, which was initially only available as an ERC-20 token on the Ethereum network.

One of the four stablecoins that Tether supports, along with others tied to the U.S. dollar [USD], Euro [EUR], and Mexican peso [MXN], is CNH.

Speaking on the latest development, Paolo Ardoino, CTO of Tether stated,

We’re excited to bring CNH₮ to the Tron ecosystem. At a time when the crypto market is experiencing immense turmoil, we believe that the best way forward is to keep building. Things are business as usual at Tether and we hope our continued growth and expansion will inspire others to keep going as well.

The announcement has hardly put any impact on TRON’s value which is down by over 40% over the course of 12 months. The token is presently the 16th largest crypto asset in terms of overall valuation with a market cap of $4.8 billion.

On the other hand, the asset performed comparatively better in stablecoin inflow last month.

TRON Hit $1B Stablecoin Inflow

According to DeFi TVL aggregator, DeFiLlama, the Tron decentralized platform observed an inflow of $1 billion USDT for the past two weeks.

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After Ethereum, TRON Welcomes Tether's Chinese Yuan CNHT 2

As seen in the graph above, the most notable day in the aforementioned period was November 18, when the blockchain witnessed a surge in stablecoin input. The other times the network saw peaks were on November 24 and November 28.

At first look, this development suggested that investors are moving forward and had a great deal of faith in the project.

But, many quickly surmised that this might not have been the truth and that Justin Sun, the founder of Tron, was actually behind it all in an effort to increase TRX liquidity.

TRON Founder Jumps On The “wETH FUD” Bandwagon

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TRON’s Justin Sun too got on the wETH jokes that are currently circulating across social media. Tagging Vitalik Buterin, the crypto entrepreneur tweeted he and the Ethereum founder would pour $2 billion into the foundation to save it from insolvency.

As a humble member of the crypto industry, I personnally have discussed with my BFF@VitalikButerin and together we will invest $2 billion into WEF to recover all the funds. Stay SAFU! Stay strong!

The other day, Crypto Twitter was rife with jokes on wrapped Ethereum losing its peg and becoming insolvent. Several big names like those belonging to the Ethereum community started adding more fuel to the fire.

One Ethereum bull and host of the Daily Gwei, Anthony Sassano even claimed that wETH was about to experience a “total collapse.” Later, he admitted that the initial post was a “shitpost/ meme” after reading the replies.

An individual using the Twitter handle @0xCygaar first began the “inside joke” by maintaining that wETH is about to become insolvent. The tweet from November 26 received more than 1,000 likes before indicating that the warning was ironic.

However, that did not stop the joke from spreading like a wildfire. Vitalik Buterin too chimed by saying how WETH and WEF sounded so similar. When a Twitter user asked him if one should buy WEF coin, Buterin said “isn’t that just Ethereum.”

Soon the wETH insolvency rumors triggered a brief selloff, prompting the crypto community to emphasize that WETH will never become insolvent and that it will always be interchangeable 1:1 with ETH.

On the price front, Wrapped Ethereum remained largely intact amidst the doomsday predictions. The token is currently hovering at $1170, down by 4% over the past 24 hours.

Meanwhile, TRON founder Justin Sun’s backed Poloniex exchange and his other firm Huobi exchange are in talks for integration, TronWeekly reported.

TRON Boss Hints Upcoming Collaborations

It’s possible that the partnership is a component of a growth strategy that the TRON founder has meticulously planned. The other day, Sun turned heads with a tweet about a possible collaboration with the BNB chain.

“I fully support the BNBCHAIN ecosystem and BUSD. Actually, we will have a big partnership announcement soon.”

Previously, Sun notified the community of the arrival of a new BEP-20 TRX token on the BNB Blockchain which has reportedly got delayed owing to technical upgrades.

TRON’s Justin Sun Vows To Make Huobi In The Top 3

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TRON Founder Justin Sun Huobi who is also the current member of the Huobi exchange’s global advisory board has laid out three strategies to enhance its position as the market leader and reclaim top ranks among other major players in the sector.

The exchange also announced its refreshed branding strategy, which would now be known as “Huobi” instead of “Huobi Global”, based on information from the rebranding launch event.

The three major development goals include global development strategy, technology drives development, and technology for good. It would also further its global footprint by, as Sun suggested “venture into the Caribbean” and moving its headquarter to the Caribbean.

In the conference, there was also discussions on ramping up Huobi’s investments in South-East Asia, Europe, and other regions to build a robust global ecosystem.

With the expansion strategy, Huobi, meanwhile, will continue to comply with regional regulations and strengthen its cooperation with nations.

That said, the exchange also drew attention for the mystery surrounding its ownership.

Puzzle Over TRON Founder’s Involvement in Huobi

Last month, Huobi Global said that co-founder and controlling shareholder Leon Li sold his stake in the company to a buyout firm managed by About Capital Management HK Co.

People familiar with the matter, on request for anonymity revealed nearly 60% ownership was purchased by Chinese-born cryptocurrency tycoon Sun for about $1 billion through the Hong Kong-based asset management About Capital.

Sequoia China and ZhenFund also sold their combined 28% stake in Huobi Global to About Capital, said the people.

The sources claim that Sun withheld his name from the agreement to evade Chinese investigation, where cryptocurrencies are largely outlawed. However, the TRON founder has consistently denied having any part in the sale of Huobi Global, and a spokesman for that firm has also disputed that Sun was the purchaser.

Huobi has established itself as one of the most well-known firm in the virtual assets market in the nine years since its foundation.

“With its refreshed branding, new roadmap, and the guidance of its global advisory board, I am confident Huobi can strengthen its market leadership and reclaim its top rankings alongside other industry heavyweights,” the TRON founder added.

TRON-Powered USDD “Dangerously Close” To De-Pegging

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TRON-based algorithmic stablecoin USDD is in a precarious situation of risking its peg amidst this week’s crypto contagion fanning fears of a domino effect.

An on-chain platform Lookonchain tweeted USDD started to depeg and was trading at $0.9788 on Nov. 10. It noted that the USDD vs. USDC/USDT/DAI pool was out of balance, with USDD accounting for 82.27%.

It all began when two whales swapped a total of over $11 million USDD in exchange for USDT and USDC in similar amounts.

According to the official website, the Tron stablecoin has a collateral ratio of 283%. The current supply is $725 million, and the collateral is $2.05 billion. Lookchain further checked the collateral details and found that over 99% of TRX was unavailable.

More troubling details came when all USDC assets were found to be deposited to Justlend which has been lent out, remaining only 596 million USDCs. With the addition of 14,040 in BTC, the actual Collateral ratio comes to 114%, increasing the chance of being heavily undercollateralized.

Launched in May 2022, USDD is the algorithmic stablecoin for the TRON blockchain. Founder Justin Sun earlier stated that the liquidity-strapped trading firm Alameda Research, a sister company of the financially troubled cryptocurrency exchange FTX, may have dumped its USDD holdings, causing the stablecoin to deviate from the peg.

The de-pegging of stablecoin values from their assumed exchange rate is a solid indicator of a liquidity crisis in the cryptocurrency market. Several stablecoins lost their pegs in May and June, and major lenders like 3AC, Voyager Digital, and Celsius Network experienced insolvencies.

TRON Founder’s Rescue Plan For FTX After Binance’s Retreat

In June, the USDD also declined to 96 cents, according to information from cryptocurrency market monitor CoinGecko.

That said, hours after Binance announced it would not proceed with a deal to acquire troubled cryptocurrency exchange FTX, Sun of TRON blockchain and the current ambassador of Grenada to the WTO, tweeted late on 9 Nov. that he and his team were “putting together a solution” with the entity.

Sun said his staff had been working around the clock to minimize future damage but offered no other information. The post was retweeted by Sam Bankman-Fried, the CEO of FTX.

Tron’s Justin Sun Claims To Be “Putting Together A Solution” With FTX

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After Binance announced it would not proceed with a deal to acquire troubled cryptocurrency exchange FTX, Justin Sun, the founder of the Tron cryptocurrency network and the ambassador of Grenada to the World Trade Organization, tweeted late on Wednesday that he and his team were “putting together a solution” with the company.

Sun said merely that his staff “has been working around the clock to minimize future deterioration” without offering any other information. CEO of FTX Sam Bankman-Fried reposted Sun’s tweet.

It was unclear from Sun’s tweet if this strategy would save FTX as a whole or only the Tron-related tokens that were held on the exchange.

FTX Saga Prior To Tron Entry

Only days after tweeting that the exchange was “fine,” FTX founder Bankman-Fried shocked the cryptocurrency world on Tuesday when he revealed that it was having liquidity problems. At the time, Bankman-Fried said he had reached an understanding with Changpeng “CZ” Zhao, the creator of Binance, to carry out a transaction. Later, CZ explained that it was only a non-binding letter of intent to purchase FTX.

After reviewing FTX’s financial records, Binance withdrew from the agreement earlier on Wednesday, claiming that “the difficulties are beyond our control or ability to aid.”

After a released study on Alameda Research’s balance sheet discovered that a sizable portion of Alameda Research’s assets was made up of the FTT token, an exchange token issued by FTX, concerns were raised regarding the stability of the FTX sister firm. Before Bankman-unexpected Fried’s revelation the following week, he and other FTX and Alameda executives tried to allay the worries.

Following the announcement of the abandoned Binance agreement, a number of regulatory bodies, including the U.S. Department of Justice, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, have hinted that they are looking into or expanding their investigations into the company. According to allegations from Bloomberg and The Wall Street Journal, these organizations are investigating FTX’s handling of customer cash as well as other issues.

SBF Warns FTX May Go Bankrupt Without Further Funds

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Amidst the bear market and the accompanying bankruptcy, the FTX saga also happens to dominate 2022. Over the past several months, numerous well-known crypto companies have been observed declaring bankruptcy. It appears that another well-known exchange will shortly be added to this list. The collapse of FTX shocked the ecology as a whole. Even more alarming was the CEO Sam Bankman-Fried’s remarks that FTX was on the verge of bankruptcy.

A recent Bloomberg story claims that SBF informed the investors that the company faced an $8 billion shortfall. To stay afloat, the exchange needs around $4 billion. The exchange would be in danger of going out of business if FTX was unable to collect this money.

According to reports, SBF acknowledged that he “f—ed up” during a conference call. He even implied that if investors came forward to help save SBF’s sinking ship, FTX, he would be “extremely, unbelievably grateful.”

With an agreement for an acquisition, Binance turned out to be a saving grace. However, in the cryptocurrency community, there were reports that the exchange was pulling out. According to Bloomberg, SBF consistently stated that Changpeng Zhao, CEO of Binance, was staying in the agreement.

The exchange confirmed that the “issues are beyond our control or ability to help,” but things went awry. Consequently, the transaction failed.

The community is still dubious about investors saving the struggling company now that federal officials are engaged.

Justin Sun, FTX’s Savior in Disguise?

Fear was spread among its users after Bankman-Fried’s Exchange unexpectedly stopped withdrawals. Justin Sun, the inventor of Tron, wanted to assist FTX clients while industry leaders were occupied discussing their exposure to the exchange. He said that his team was “working around the clock to avert further deterioration, ” in a recent Twitter conversation.

Sun provided scant details, further adding,

“I have faith that the situation is manageable following the wholistic approach together with our partners.”

TRON Founder Echoes Binance CZ’s Proposal For “Full Transparency”

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TRON’s Justin Sun who is keeping an eye on the recent turn of events surrounding FTX threw his weight behind Binance’s CEO proposal of undertaking Merkle-tree proof-of-reserves to ensure “full transparency.”

Sun stated that his two crypto exchanges Poloniex and HuobiGlobal have completed their respective proof-of-reserves audits and would gladly take up the third one with CZ’s proposal.

The tweet by Tron’s founder was in reference to FTX’s troubling scenario that forced Binance to liquidate some of its holdings triggering a withdrawal halt by FTX.

Trouble around the health of FTT tokens has been brewing ever since Sam Bankman-Fried led Trading firm Alameda Research’s financials were made public.

The balance sheet showed that Alameda controls the largest amount of assets on SBF’s cryptocurrency exchange FTX, notably its FTT token, which offers holders a discount on trading costs on the exchange’s market.

While holding tokens is not rare, the worrying trend however is Alameda’s heavy dependency on its sister company and the lack of a stand-alone asset like fiat money or another cryptocurrency to back it up.

Investors were concerned that the arrival of massive sell orders could have a harmful effect on the price. The developing situation was also reminiscent of the crypto loan provider Celsius Network going insolvent under similar circumstances.

To make matter worse, Bankman-Fried was facing backlash from the industry for advocating regulatory strategies that would virtually destroy DeFi.

All these might have driven Zhao’s decision to pull out from FTX who also took a dig at the young billionaire, saying, ” We won’t support people who lobby against other industry players behind their backs.”

After an exchange of barbs between the two crypto founders, things came “full circle” as SBF likes to put it.

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TRON Founder Echoes Binance CZ's Proposal For "Full Transparency" 4

TRON Founder and Others Come Together To Follow The Merkle Tree Structure

Both FTX and SBF gave followers the assurance that their exchange was stable. Later FTX ultimately decided to engage in a “strategic transaction” with Binance in order to address a “liquidity crunch”

Soon after the takeover agreement that shocked many, Binance chief CZ again took to Twitter to announce the publication of “proof of reserves.”

According to CZ, blockchains use a “Merkle tree” as a data structure to record transaction data. Therefore, “Merkle-tree proof of reserves” could refer to a method that uses open blockchain data to demonstrate that exchange users’ crypto assets are secure.

Five cryptocurrency exchanges, in addition to Binance, have pledged to adhere to the Merkle tree structure to provide total transparency. These are Bitgate, Gate.io, Binance, TRON’s Justin Sun/Huobi, and OKX.

TRON blockchain founder Sun, who recently became Huobi’s global advisory board member, mentioned that Huobi had just wrapped up such an audit about a month back.

Here’s How TRON’s Justin Sun Reacted To Cash Out Rumors

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The founder of the TRON blockchain Justin Sun clarified that the recent transfer of USDC with Circle is only “internal capital deployment and allocation,” shutting down rumors of cashing out.

These “in and out” moves according to Sun would be a routine affair, meaning as the business expands, the amount of related fund sorting and allocation will also increase simultaneously.

For the development of the industry is a good thing. We are highly optimistic about the blockchain, vigorously recruit, and continue to increase our holdings of TRX, HT and other TRON series of Domenico fiat currencies, and become a glorious fiat currency holder!

BlockBeats, a Chinese news website that first covered the news, cited on-chain statistics of Sun transferring a total of 2.36 billion USDC to Circle, since May 12 [after the crash of UST and LUNA].

The transfer raised eyebrows especially after Sun became a member of the newly formed Huobi Global’s advisory board, which last week outlined the cryptocurrency exchange’s future objectives, TronWeekly reported.  

The crypto entrepreneur also revealed in an interview with Bloomberg that he owns “tens of millions” of HT, the Huobi digital exchange’s native token.

TRON Founder-Backed HT Token Grew By 80%

Following that appearance, rumors about Sun’s alleged holdings started to spread. Chinese reporter named Colin Wu tweeted that 74 million had been transferred from Huobi’s official wallets to wallets linked to the founder of Tron.

The value of HT increased by an astounding 80% over the course of the week, nearly wiping out all losses it had experienced since the year’s beginning.

The founder of Tron further stated that he wants to concentrate on Huobi’s international growth and, if regulations permit, eventually bring the exchange back to China, where it was originally based before leaving last year amid a broader crackdown on the cryptocurrency industry.

Apart from that, the TRON ecosystem got a major boost by signing a crucial agreement with the Dominican Republic government to serve as its designated national blockchain infrastructure.

Following the Caribbean island nation’s approval of Virtual Asset Business legislation in May 2022, the cooperation was established.

The government of Dominica has given the go-ahead for TRON to release Dominica Coin [DMC], a blockchain-based fan token, to support the island nation’s efforts to promote awareness of its natural heritage and tourist attractions on a global scale.