Key Insights
- Justin sun, the crypto entrepreneur, announced that he was working with his team to “put together a solution” to bail out FTX, the distressed crypto exchange.
- After a proposed agreement with the leading centralized exchange, Binance fell through due to “issues beyond (Binance’s) control or ability to help.”
- While some onlookers have praised Sun for his willingness to help, others have expressed skepticism over his intentions.
In a tweet, Justin sun, the crypto entrepreneur and founder of the Tron ecosystem mentioned that he was working with his team to “put together a solution” to bail out FTX, the distressed crypto exchange.
Further to my announcement to stand behind all Tron token (#TRX, #BTT, #JST, #SUN, #HT) holders on #FTX, we are putting together a solution together with #FTX to initiate a pathway forward. @FTX_Official
— H.E. Justin Sun 孙宇晨 (@justinsuntron) November 10, 2022
Sun sent out this tweet hours after Binance announced it would not be going forward on its bailout deal with FTX.
“My team is working to avoid further deterioration,” the Tron founder said in the tweet, “I have faith that the situation is manageable.”
While the tweet suggests a partnership with FTX, Sun didn’t specify whether the solution his team comes up with would be a bailout for the entire FTX exchange or rescue for only Tron-related tokens like Tron, Huobi token, JST, or BTT.
This November, users withdrew more than $1B from FTX in just seven days due to the increased scrutiny that FTX and its sister company Alameda Research have been under for their asset reserves and intertwinement since November 2.
FTX has acknowledged that it no longer has enough liquidity to handle further withdrawal requests due to its growing withdrawal backlog.
After a proposed agreement with the leading centralized exchange, Binance stepped back due to “issues beyond (Binance’s) control or ability to help,” the exchange appears to be looking for a buyer.
As users’ money remains unclaimed on the platform, the crypto market and community have become more fearful and insecure.
FTX’s 8 Billion Dollar Deficit
After Justin Sun’s tweet, many users have drawn attention to the fact that more than 6 billion dollars worth of tokens would have to be swapped for Sun to step in. Many others have asked how Sun plans to come up with this amount of liquidity.
While some onlookers have praised Sun for his willingness to help, others have expressed skepticism over his intentions and how exactly he plans to help, especially how FTX went underwater and left an 8 billion dollar hole.
Meanwhile, Sun recently joined the board of Huobi, a centralized cryptocurrency exchange. This week, Huobi and Tron DAO announced that users of FTX will be able to redeem their FTX-trapped TRX, BTT, JST, SUN, and HT tokens.
As per the announcement, Tron-based token holders affected by the FTX saga can submit a form on Huobi’s website and have their transactions processed.
Tron (TRX) Price Analysis
An analysis of Tron on the daily chart shows that TRX is starting to appear bullish after a 7% dip in the last 24 hours.
Tron has tested the $0.052 support level and has entered a bounce. This $0.052 level represents a potential baseline from which the price may enter a medium-term upswing.
The 50-day SMA is at $0.06184, underneath the $0.06338 value line of the 100-day SMA indicator. This indicates that the bears are still in control of the market.
The RSI on the daily chart shows oversold conditions but is now in the middle of a reversal as Tron appears to be heading back toward the $0.065 zone.
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