Justin Sun, Do Kwon, and Sam Bankman-Fried: A Trifecta of Crypto Empire Builders
The TRON founder, Justin Sun, is similar to Sam Bankman-Fried and Do Kwon in terms of their ambitious nature, SEC cases, and involvement in the crypto industry. If any of their empires were to collapse, it would have a significant impact on the industry. Justin Sun has been involved in various aspects of crypto, including Ripple Labs, launching a blockchain, and being an investor and advisor. However, there are distinct similarities between Justin Sun, Do Kwon, and Sam Bankman-Fried, both in terms of their personalities and business practices.
Similarities and Potential Consequences
- Justin Sun has similarities to both SBF and Do Kwon, including “savior washing” and problematic projects.
- Justin Sun reportedly made statements about pumping the price and faking KYC.
- The downfall of Justin Sun could have cascading effects on the crypto industry, similar to the collapses of SBF and Do Kwon.
- Tron blockchain now has a similar Total Value Locked (TVL) as Do Kwon’s Terra blockchain before its collapse.
- Recent allegations of foul play at Huobi, a crypto exchange controlled by Justin Sun, raise concerns about the potential insolvency of the exchange.
The Power of Founders in Blockchain
Blockchain systems are often described as “so-and-so’s blockchain” due to the centralized control exerted by their founders. Do Kwon effectively controlled the Terra blockchain, and Justin Sun has his own set of admin keys for Tron. This centralized control raises concerns about the stability and integrity of these blockchains.
Tron USDT and Tether’s Involvement
Tron USDT, issued on the Tron blockchain, is of particular importance to the Asia-based crypto trading scene. It is used for trading and as a funnel to establish backing for a USD payment network aimed at people who cannot easily hold or transfer USD. The involvement of Tether, specifically SBF and his exchange FTX, raises questions about the transparency and trustworthiness of these operations.
The Issue of Pegged Assets
Pegged assets, such as Tron-issued USDT, can be easily manipulated and gamed by exchanges. The lack of regulation and transparency in centralized exchanges allows them to control the value and supply of pegged tokens. This can lead to a situation where there is not enough collateral to redeem all the outstanding pegged assets, causing significant disruptions in the market.
Hot Take: The Collateral Damage of a Collapsed Crypto Empire
The potential collapse of Justin Sun’s crypto empire, similar to the collapses of SBF and Do Kwon, could have far-reaching consequences for the crypto industry. The centralized control exerted by these founders raises concerns about the stability and integrity of the blockchains they oversee. Additionally, the involvement of Tether and the issue of pegged assets further highlight the need for transparency and regulation in the crypto market.
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