Justin Sun of Tron contemplates an offer for FTX's holding tokens as crypto markets bend to FUD

• Tron founder Justin Sun has expressed consideration to purchase FTX’s holding tokens and assets intended to reduce FUD-induced selling pressure.
• Sun’s comment comes ahead of the Omnibus Hearing on September 13, likely to see FTX’s holdings offloaded to the market.   
• Some are calling it a second example of Sun’s “savior syndrome”. 
• In the first, the Tron founder offered to purchase BTC from the US government in the Ulbricht case.

Justin Sun, founder of the Tron blockchain has hinted at the possibility of purchasing defunct crypto exchange FTX’s holdings, as the cryptocurrency market keeps eyes peeled ahead of the Omnibus Hearing scheduled for September 13.

Also Read: Solana price crash and FTX hearing: A complete rundown

Justin Sun may have an offer in mind for FTX

Justin Sun has revealed in a post on social media platform X that he is considering “an offer for FTX's holding tokens and assets,” even as concerns spread over the potential impact on the market should the court allow FTX to liquidate its assets.

As per the post, Sun foresees an impending selling impact on the crypto community if FTX offloads its assets to the market. Solana (SOL) price is already falling, bearing the brunt of an expected dump, as token holders anticipate increased supply if the bankrupt exchange gets the green light to liquidate.

As FXStreet reporter Aaryamann Shrivastava reported, Solana accounts for a huge chunk of FTX’s bankrupt estate, accounting for up to $1.16 billion out of the total $7 billion. Of the FTX holdings, Bitcoin (BTC) totals about $500 million, while the rest is a variety of other tokens.

Justin Sun’s “hero syndrome” lives on

Notably, this is not the first time Sun has expressed intention to come to the rescue of the market as it eyes a certain sell-off. During late March, the Tron executive offered to buy Bitcoin at a 10% discount in an Over-The-Counter (OTC) deal with the US Government which said it was planning to sell around 41,500 BTC tokens.

His reasons remain the same: to cushion the market from imminent impact. A purchase OTC – which means outside of the regular market – would have little (if any) impact on the market price. In a recent post on BlackRock, we explained how large holders or whales (institutional investors) capitalize on OTC transactions to increase their holdings while sparing the market from a resounding impact.

Mark Helfman, a Bitcoin writer, explains how institutional investors go through custody solutions like OTC to hide their activities. He says, “They find a broker for a private sale and settle the exchange in batches.” This is what Sun would ideally do to spare the market from impact.

…brokers are not obligated to report private deals, it’s difficult to know who’s moving money where without forensic technology or an insider who knows about the deal.

For this reason, Sun’s transaction could spare the assets or holdings he acquires from recording price dips around the anticipated liquidation. 

Also Read: FTX exchange’s motion to convert crypto to fiat could make or break the payback plan in September 13 hearing. 

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