Recently, FTX Group’s declaration of bankruptcy has had a tsunami effect on the cryptocurrency ecosystem. With billions of dollars belonging to FTX users missing, TRON (TRX) founder Justin Sun is looking to acquire some of the platform’s assets to compensate users.
Future buyouts to be expected by Justin Sun
By blocking customer withdrawals, FTX Group has generated billions of dollars in losses for investors. Now the company is seeking funds to make up for this deficit and compensate its users for their losses.
In this context of fundraising, players in the Web3 ecosystem are interested in acquiring certain assets of the bankrupt exchange.
This is the case of Justin Sun, founder of the TRON ecosystem (TRX), advisor to the Huobi exchange, and Grenada’s representative to the World Trade Organisation (WTO).
In a recent report, the man of many hats emphasised the laborious nature of future FTX asset purchases:
We are open to any kind of deal. I think all options [are] on the table. […] Right now, we’re evaluating the assets one by one, but from what I understand, it’s going to be a long process since they’re already in bankruptcy proceedings. “
In addition, representatives from TRON and Huobi are currently on a trip to the Bahamas to discuss with FTX teams.
Will FTX customers be able to get their money back?
As the cryptocurrency industry plunged into one of its deepest crises, Justin Sun was one of the first to state his support for FTX’s victims.
On the eve of the platform’s bankruptcy filing, and while withdrawals were blocked, an agreement between TRON and FTX had been signed to allow the withdrawal of certain cryptocurrencies belonging to the TRON (TRX) ecosystem.
FTX Announcement Regarding the Tron Credit Facility:
We are pleased to announce that we have reached an agreement with Tron to establish a special facility to allow holders of TRX, BTT, JST, SUN, and HT to swap assets from FTX 1:1 to external wallets.
– FTX (@FTX_Official) November 10, 2022
“We are pleased to announce that we have entered into an agreement with Tron to establish a special facility to allow holders of TRX, BTT, JST, SUN and HT to swap their assets from FTX to external portfolios at a 1:1 ratio. “
Nevertheless, since this exit door was available to all FTX users, the TRX token price of the TRON blockchain increased 10-fold, but only on the FTX exchange. As a result, investors using this method were exposed to significant losses.
Justin Sun is not the only investor to look at the FTX situation.
A few days ago, Ripple CEO Brad Garlinghouse announced that he was interested in acquiring some of FTX’s assets.
However, the interbank trading company is more focused on buying FTX-owned businesses. Moreover, these investments will not compensate for the financial losses of the exchange’s users.
As we have just seen, FTX customers are likely to never see their funds again. This unprecedented event is a reminder of the abuses that can be generated by certain centralised entities.
To protect yourself from these events, there is a solution: acquire a cold wallet to secure your cryptocurrencies away from centralized platforms and the risks associated with them.
