TRON Prepares for Public Offering: Justin Sun Makes a $210 Million Move
TRON (TRX), led by Justin Sun, one of the controversial figures in the cryptocurrency world, is preparing to go public in the US with a remarkable move. Instead of a traditional initial public offering (IPO), TRON has chosen to pursue a “reverse merger” with SRM Entertainment, a company listed on NASDAQ, thereby gaining backdoor access to US public markets.
New company: Tron Inc. and a $210 million strategy
According to a June 16 report by the Financial Times, the new company that will emerge from the merger will be named “Tron Inc.” This entity will launch with an initial investment of $210 million in TRON's native token, TRX. The investment will be provided by Justin Sun's crypto asset platform. Additionally, SRM Entertainment has secured a $100 million equity investment through a securities purchase agreement with a private investor.
Tron Inc.'s long-term vision aims to establish a sustainable revenue model through the purchase and staking of TRX tokens. The company also plans to implement a dividend distribution policy. Following these developments, the TRX price rose by approximately 7% to $0.2841.
Eric Trump's name is drawing attention
Another striking aspect of this development is the emergence of Eric Trump, the son of US President Donald Trump, in a leadership role at Tron Inc. This move is seen as reinforcing Justin Sun's recent pro-Trump steps. As is well known, Sun previously launched a Trump-themed TRUMP memecoin and also launched a stablecoin called USD1 under the World Liberty Financial umbrella. This merger process is being managed by New York-based investment bank Dominari Securities. The bank's connections to the Trump family are also a notable detail.
Has the SEC lawsuit been put to rest?
TRON's public offering comes after Justin Sun faced a lawsuit filed by the US Securities and Exchange Commission (SEC) in 2023. The SEC had accused Sun of manipulating the price of the TRX token. However, in February 2024, the SEC's new administration decided to shelve such aggressive crypto lawsuits, and the charges against Sun were dropped. This development paved the way for Sun's return to the US market.
The TRON network currently has over 310 million international user accounts and an average daily transaction volume exceeding $20 billion. According to Justin Sun, TRON aims to transform global payment systems by providing low-cost and fast transfer capabilities. In this context, the newly established Tron Inc. is expected to expand the TRON protocol to a broader user base in the U.S. market.
