Details remain murky at the time of press, but Tron’s Justin Sun he’s putting together a solution for FTX. But only for a specific group of investors.
Justin Sun, the ‘celebrity’ behind the TRON blockchain, may just come to the rescue of a group of investors. More specifically, holders of TRON-related tokens (TRX, BTT, JST, SUN, HT) whose funds on FTX were lost in the implosion of the exchange.
TRON and Justin Sun Race to the Rescue
In a Nov. 10 tweet, Grenada’s ambassador to the World Trade Organization added that he and FTX worked together to “initiate a pathway forward.”
Soon, Sam Bankman-Fried, the CEO of FTX, retweeted Sun’s tweet. Sun and his team explored different solutions to avoid any further deterioration. Needless to say, a further liquidity crunch could massively harm the crypto industry and investors across the board.
The TRON CEO further added:
“The ongoing liquidity crunch, despite short-term in nature, is harmful to the industry development and investors alike. My team has been working around the clock to avert further deterioration. I have faith that the situation is manageable following the wholistic approach together with our partners. Stay tuned.”
Will this come to play, or is it just another marketing stunt to stay relevant? Given the wide liquidity gap, as Bankman-Fried informed investors, his crypto exchange faced a shortfall of up to $8 billion and needed $4 billion to remain solvent.
But despite that, Sun’s action did create some stir in the crypto market. For instance, crypto exchange Huobi, in the same thread, added an amusing image:
Others reacted more critically with questions and doubts but received no direct answers at the time of press.
The struggle is real
This development comes after Binance abandoned plans to acquire rival FTX due to its alleged mishandled funds and U.S agency investigations. Following this, the crypto market has witnessed significant price falls amidst increased selling pressure.
At the time of writing, the global crypto market suffered an 8% correction in a single day. But this could go from bad to worse.
JPMorgan Chase & Co. strategists said crypto markets face weeks of deleveraging in the fallout from the crisis at FTX, a period of upheaval that could push Bitcoin down to $13,000. A “cascade of margin calls” is likely underway.
Another factor to consider could also be regulators’ play here as the crypto industry faced yet another blow.
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