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Will TRON’s founder save DCG and the entire crypto space? Justin Sun to spend billions to buy assets

John KumiBy 0Edited by John Kiguru 16. January 20233 Mins Read
  • Following its recent struggles, DCG has sought to offload part of its portfolio to raise money.
  • In response, Chinese crypto entrepreneur Justin Sun has reportedly shown a willingness to spend $1 billion to buy these assets. 

Crypto lender Genesis, whose parent company is Digital Currency Group (DCG), froze withdrawals in November as it made efforts to avoid a bankruptcy filing. It is reported that the company owes about $3 billion to creditors. In its venture capital portfolio, DCG lists over 160 companies. Following its recent struggles, the company has sought to offload part of its portfolio to raise money. In response, Chinese crypto entrepreneur Justin Sun has reportedly shown a willingness to spend up to $1 billion to buy these assets. 

According to reports, the decision will depend on their evaluation of the situation. Sun is the founder of the Tron blockchain, and also an advisor of the crypto exchange Huobi. As his interest has triggered excitement within the crypto community, others have reserved their comments as many high-profile players in the industry failed to conclude such deals after initially showing interest. It can be recalled that Binance announced it had signed a non-binding agreement to buy FTX non-US unit, however, Changpeng Zhao, the CEO changed his mind after doing due diligence. 

As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.

Recently, Sun also assured to provide billions in aid to distressed crypto exchange FTX. However, this did not materialize. 

DCG founder accused by 3AC founders

Barry Silbert, the founder of Digital Currency Group, was accused by the founders of 3AC: Su Zhu and Kyle Davis of attacking Terra and engaging in a Ponzi-Esque lending scheme.

Zhu Su said:

Here’s rough summary of dcg situation

1) they conspired w FTX to attack Luna and steth and made a fair bit doing so

2) they took substantial losses in the summer from our bankruptcy as well as Babel, and other firms involved in gbtc

3) they could’ve calmly restructured then.

Gemini exchange co-founder Cameron Winklevoss also sent an open letter to DCG’s board of directors on January 10, claiming that Silbert and DCG pretended to fill a $1.2 billion hole in the Genesis balance sheet. The letter called for the removal of Silbert, claiming he is unfit to run the company. 

Galaxy Digital Holdings CEO Mike Novogratz has also stated that DCG’s crisis will not include a lot of selling. This is, however, a sharp contrast to Arcane Research’s warning to investors to pay attention to the ongoing financial distress. 

According to them, the situation could severely impact the crypto market. They further mentioned that there is a high possibility that the company could liquidate its assets and sell a sizable position of its Grayscale Bitcoin Trust (GBTC) and other crypto-related trusts which could affect the entire crypto market performance. 

Novogratz also objected to this, arguing that Bitcoin and Ethereum have done relatively well despite several bad news in the last few months. 

 

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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: info@crypto-news-flash.com Phone: +49 160 92211628

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