Justin Sun proposes billion-dollar fund to save crypto

In another attempt to garner attention — much like his offer to buy Bitcoin from the German government, purchase TRON from holders on FTX, and otherwise throw money at numerous projects in the cryptocurrency industry — TRON creator Justin Sun is now, apparently keen to start a billion-dollar fund to save the entire space from self-immolation in the midst of a 20% drawdown of the price of most tokens, including bitcoin.

Don't worry! The industry has grown significantly over the past year, and this market fluctuation isn't due to negative news. We should reject FUD and keep building. That's why we're creating a $1 billion fund to combat FUD, invest more, and provide liquidity. 🙏
— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 5, 2024

The offer, whether real or fictional, comes in the wake of a broader financial correction that’s seen the Japanese Nikkei lose 20% — all gains year-to-date — in a few days, and other important indexes, such as the S&P 500 and Hang Seng Index, also lose multiple percentages from their highs in a short period of time.

Investors appear to be rattled by US employment statistics and uncertainty about whether or not the Federal Reserve chairman, Jerome Powell, will cut rates soon.

However, most crypto advocates have long held that the asset class shouldn’t correlate to other volatile financial markets, like tech stocks and flows into venture capital. In fact, Bitwise CEO, Hunter Horsley has suggested that “as rates come down and fears of recession loom, a lot of dollars parked in equities and fixed income will be looking for a new home.”

It’s unclear why that new home would be bitcoin, ether, or other cryptocurrencies.

Justin Sun’s offers have a poor track record

Previous offers by Sun to buy bitcoin from the German government and purchase TRON from holders on FTX have completely fallen through. Among those who have previously put forth similar recovery fund ideas are Sam Bankman-Fried — the buyer of last resort before the collapse of FTX — and Changpeng Zhao, who proposed a billion-dollar fund to save crypto in 2022.

Both have wound up behind bars.

Justin Sun-advised HTX plays games with its reserves

For what it’s worth, CZ’s ‘billion-dollar fund’ never used the money as claimed, and any of the funds that were utilized were almost exclusively for Binance-related projects.

So, will Sun follow through and create a billion-dollar fund to “combat FUD, invest more, and provide liquidity”? It remains to be seen, but regardless, the billionaire investor has just entered a minefield that previously took down the two richest CEOs in the crypto industry.

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