Key Takeaways:
- What’s Justin Sun’s obsession with TUSD?
- The list of Tron CEO’s troubles with the law continues.
- Tron lender JustLend smells a lot like FTX now.
YEREVAN (CoinChapter.com) – The long list of complaints against Tron founder Justin Sun drags along with a new accusation. The entrepreneur minted and burnt stablecoin TUSD by the millions, which led to suspicions of temporarily unwinding an unbacked debt.
Here are more details on the matter:
Justin Sun mints and burns TUSD like hotcakes
The Tron CEO is manipulating the markets again “out in the open,” reported financial analyst Adam Cochran, calling Sun a “bastard.”
According to the analyst, Sun’s address minted over $62 million TUSD, then withdrew $50 million in Tether stablecoin USDT from the Huobi exchange. The CEO then allegedly deposited another $50 million UDST onto the Bitfinex exchange and burned $50 million TUSD. Finally, he deposited $50 million USDT and $12 million TUSD into JustLend, a lending platform on Tron.
The mentioned transactions are fishy at best, as Sun is basically conjuring TUSD and using several exchanges to borrow against.
No reason to instantly mint and then burn TUSD unless you were using the fake balance to temporarily snapshot or unwind debt and it was unbacked. + Tons of Huobi assets getting plowed into JustLend for him to borrow against shitcoins…
added Cochran.
He also mentioned that the TUSD manipulations are going on right under Binance’s nose, but the CEO Changpeng Zhao (CZ) doesn’t bat an eye. “[CZ] is still doing promos with TUSD and letting it be collateral,” said the analyst.
Notably, Binance owns the several largest TUSD pools or over 90% of the liquidity. IF TUSD loses its dollar peg again or implodes like the Terra stablecoin, the repercussions could ripple through the market.
Moreover, Sun’s funny business with TUSD earned him a lawsuit from Archblock founder Rafael Cosman, on top of another lawsuit from the US Securities and Exchange Commission.
Can Tron collapse like FTX and Alameda?
The situation smells a lot like the ballooning FTX exchange, which infamously crashed, evaporating over $40 billion of investor money. FTX used Alameda as a piggy bank, forgetting to mention that the sister company shared funds with the exchange.
Thus, FTX fell in on itself, all the while borrowing from customer funds. What happens if Tron loses altitude? As far as Justin Sun is concerned, Tron is doing great.
High anticipation surrounds TRON’s Q3 financial report following an impressive Q2. Earnings peaked at $77.27 million, showcasing the platform’s resilience in the blockchain landscape. With doubled revenue from the previous year, TRON’s growth trajectory is undeniable!
tweeted the CEO hours ago.
A gentle reminder for those out of the loop: Tron is the second-largest L1 chain after Ethereum and has nearly $5.7 billion in total value locked (TVL). The platform’s Tether market dominance stands at 93%, as the largest stablecoin globally commands a market cap of over $83 billion.
If Tron goes down, the damage to the crypto market could be immeasurable, considering the factors mentioned above. Thus, before bragging about Tron’s successful quarter, Justin Sun might consider revising his transparency policy and battling his legal issues.
