Justin Sun Wants To Save Crypto With $1 Billion Fund

Justin Sun, the founder of Tron, is out to save the industry amid a crushing sell off in global financial markets across.

As Bitcoin barely holds its head above $50,000 after nearing $70,000 last week when Trump headlined at the Bitcoin2024 conference, Sun says he’s here to save the day.

“Don’t worry! The industry has grown significantly over the past year, and this market fluctuation isn’t due to negative news,” he wrote on Twitter while Ethereum inched its way toward $2,200. “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.”

The move comes in reply to allegations that Sun and one of his companies, Huobi, were on the verge of liquidation. He posted on X that the rumors were false, and claimed that members of his team rarely engaged in leveraged trading.

Nevertheless, details of the plan are yet to surface, and what fighting FUD, investing more, and providing liquidity actually means has many users scratching their heads. Especially considering Sun’s history of empty promises.

Justin Sun did not immediately reply to a request for comment from The Defiant.

Empty Promises

This isn’t the first (and likely won’t be the last) promise by Sun to save the crypto industry.

In November 2022, as FTX unraveled and sent the entire industry into a death spiral, Sun said he would throw a lifeline at the exchange’s trapped users. He claimed his team was “putting together a solution,” that entailed an alleged holistic approach. That solution, however, never came.

One month ago, Sun announced he was “willing to negotiate” with the German government after news surfaced that authorities were offloading vast swathes of BTC they held. He wrote he was bidding to minimize the impact on the market of the $2 billion sold in early July.

Once again, however, he never followed through.

His plan to deploy $1 billion to “fight FUD” is in line with another big-name founder who also tried the same strategy, Binance founder Changpeng Zhao. Zhao, also known as CZ, attempted to rescue the failing FTX with a letter of intent.

After reviewing the financial records of the company, CZ pulled out, claiming the issues were beyond their control.

CZ is now in jail serving a four month sentence for breaking U.S. securities laws.

Another big name crypto founder also tried his hand at saving the market during times of distress. Now-detained founder of Terraform Labs, Do Kwon, famously tweeted on May 22, 2022, “Deploying more capital – steady lads,” amid a bank run on his company and the depegging suffered by his in-house stablecoin, UST.

Days after the tweet, UST wiped $40 billion from its market capitalization, Terraform went under, and Do Kwon fled. He is now detained in Montenegro where he awaits extradition to his native South Korea after being found liable for fraud by the SEC.

It may be tempting for crypto tycoons to play the hero, and even more tempting for traders to believe them. But in the end, market forces are difficult to fight, and all investors can realistically ask these founders for is that their platforms work as intended when they need to trade, withdraw or close a leveraged long.