Justin Sun has apparently noticed a number of pretty significant events happening in crypto at present. He also seems to have realized that nobody’s talking about him so, in true Justin Sun fashion, has found a way to insert himself into the discussion.
First, he announced his intention to do something that will somehow help people who hold Justin Sun-associated tokens on FTX. He claimed that he’d “stand behind” his tokens by “putting together a solution” with FTX. It’s unclear what such a solution would look like, but Sam Bankman-Fried (SBF) did retweet it and Tron trading has resumed on FTX for some reason.
It’s also unclear in exactly what way Sun will be able to help with the massive financial, legal, and regulatory challenges currently overwhelming FTX.
Justin Sun and the Tron DAO Reserve behind his foolishly-designed stablecoin USDD (an algorithmic stablecoin inspired by Terra, but with less effort put into execution) have offered to purchase tethers from the open market — up to a billion of them, as the currency’s peg has wavered slightly.
The mechanisms of this purchase are also somewhat unclear. Currently, USDD has ~14,000 BTC valued at approximately $250 million, ~440 million USDC, and almost 2 billion TRX, valued at about $100 million. In total, if it was all committed to purchasing Tether — a dubious decision at best for a dubious stablecoin — this amounts to about $790 million in value.
Justin Sun needs to be seen as a hero, but his ‘promises’ shouldn’t be treated as such. Instead, we should regard them as the delusions of a huckster who will try to sell you something with a plagiarized or blank whitepaper.