• Justin Sun, founder of the TRON Foundation, has revealed he is willing to spend up to $1 billion of his own money to buy assets of Digital Currency Group (DCG).
• DCG lists over 160 crypto companies in its portfolio, including Coinbase, Kraken, and Circle, which runs the stablecoin USDC.
• Sun had previously said he was prepared to provide distressed cryptocurrency exchange FTX with billions in aid before the exchange filed for bankruptcy.
Justin Sun, founder of the TRON Foundation and advisor to the crypto exchange Huobi, has revealed that he is willing to spend up to $1 billion of his own money to buy assets of Digital Currency Group (DCG), the parent company of embattled cryptocurrency lender Genesis. This comes in the wake of Genesis owing over $3 billion to creditors, forcing DCG to consider selling some of its massive venture portfolio to raise money.
DCG lists over 160 crypto companies in its portfolio on its website, of which it has acquired 28. CoinDesk, Grayscale, and Genesis are three of the biggest companies listed in its portfolio. The company is also an investor in U.S. crypto exchanges Coinbase and Kraken, and its other holdings include the U.S. firm Circle, which runs the stablecoin USDC. Sun did not specify which parts of DCG’s VC assets he plans to acquire.
Sun is one of the richest figures in crypto but his net worth is unknown. Notably, Sun had previously said he was prepared to provide distressed cryptocurrency exchange FTX with billions in aid before the exchange filed for bankruptcy in mid-November. However, the deal eventually did not take place. In the wake of FTX’s collapse, Genesis announced that it is temporarily suspending redemptions and new loan originations. In a statement on Twitter, Genesis said the “abnormal market conditions” created by the FTX bankruptcy had caused it to adjust its risk management policy.
The news of Justin Sun’s offer to buy DCG’s assets has been met with mixed reactions from the crypto community. Some have praised Sun for his willingness to invest in the industry, while others have raised concerns about his intentions. Regardless, Sun’s offer is a sign that the crypto industry is maturing and that investors are willing to put their money towards helping the industry grow. With Sun’s offer on the table, it will be interesting to see how DCG and its creditors respond.