Crypto billionaire Justin Sun has his company, Tron, available in the US market.
The top investor, who owns $75 million in its first family, Crypto Bank World Liberty Financial, announced a reverse merger with commodity supplier SRM Entertainment on Monday.
Newsweek contacted SRM Entertainment via email for comments.
context
Sun is a supporter of the Trump administration’s voice of cryptocurrency embrace and has invested heavily in the world’s Liberty Financial, the Trump family’s crypto venture that lists Baron Trump as one of its ambassadors, along with Eric and Donald Jr.
What do you know
President Donald Trump has long promoted his youngest child, Baron, as a family cryptocurrency expert, in an interview last year, saying, “He knows a lot about this.” Baron Trump has won nearly $40 million from cryptocurrency ventures and has won multiple “wallets,” a kind of portfolio used to manage blockchain transactions.
This makes him the richest of Trump’s son at age 19. Baron’s position at World Liberty Financial, where he ranks the same as the rest of his family, is his first major foray into the business world.
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Baron is currently enrolled at Stern Business School at New York University. There, the fees will revert students to $99,000 a year.
The merger appears to be robbing official ties between the Sun and Trump families, with the Financial Times reporting that Eric Trump is expected to play a role in the new company that will be rebranded as Tron Inc.
However, in a previous Twitter statement, Eric Trump rejected the report, saying, “I am the biggest fan of Tron and Love Justin Sun. He is a great friend and an icon of the crypto space.
Shortly after the merger was reported, shares of SRM Entertainment, a NASDAQ-listed company, rose 647%. The company’s market capitalization was $146.24 million at the time of writing.
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The merger includes Tron’s injecting $210 million in crypto assets into the newly formed Tron Inc, which said, “A strategic investment worth $210,000,000 at full exercise of the warrant allows SRM to build a massive Tron financial strategy.
“This transaction is consistent with the company’s vision to create long-term value for shareholders by leveraging the global adoption of blockchain and digital innovation. As part of its Tron financial strategy, the company intends to implement a dividend policy regarding the successful implementation of its TRX staking program.”
Tron was founded in 2017 to manage blockchains with the same name. The company’s founder, Sun, had previously been charged with securities fraud by the SEC after Trump took office in January, before the charges were dropped.
Blockchain is a digital, decentralized, and distributed ledger like a spreadsheet, which records transactions on many computers.
What people are saying
In a statement on the merger, Justin Sun, Tron founder, said:
“With over 310 million international user accounts and an average daily transaction YTD (annual) exceeding $20 billion, Tron strives to be the choice protocol for Onchain settlements serving mass groups around the world.”
Rich Miller, CEO of SRM Entertainment, said, “As blockchain technology adopts globally, Tron has become an industry leader in cross-border settlements for US dollar stubcoin. We are excited to invest in the future of the world’s next-generation financial infrastructure.”
What will happen next
The reverse merger is expected to take place over the next few months.
