TRON sees gains amid rumors of its plan to go public in US: Financial Times

TRON (TRX) saw a 2% uptick on Monday following reports that the decentralized platform founded by Justin Sun is planning to become a public company, with United States (US) President Donald Trump's son, Eric Trump, allegedly taking a role in the new firm, according to the Financial Times.

TRON plans to go public in merger with SRM Entertainment

Cryptocurrency platform TRON plans to become a public company in the US, according to a Financial Times report on Monday.

The public launch will follow a reverse merger with Nasdaq-listed SRM Entertainment (SRM) in a deal facilitated by Dominari Securities. The company will also take on the name Tron Inc. and mirror Strategy's Bitcoin focus for TRX.

The report alleged that Eric Trump, the son of President Trump, will join Tron Inc. in a key role. However, Eric denied the claims, stating that while Sun is a good friend, he has no public involvement with the alleged company.

https://x.com/EricTrump/status/1934669116046029272

This comes after toy company SRM Entertainment announced that it entered a purchase agreement with a private investor for a $100 million equity investment to help fund a TRON treasury strategy.

The toy company stated in a press release that it will raise $210 million through the sale of its Class B shares to strengthen its TRON treasury. As part of the new strategy, TRON founder Justin Sun will join the company as an advisor. SRM Entertainment further shared that it will implement a "dividend policy upon the successful implementation of the TRX staking program."

The potential move into the US market comes months after the Securities and Exchange Commission (SEC) paused its case against Justin Sun. The US regulatory watchdog earlier charged the TRON founder and his affiliated companies with fraud and market manipulation regarding the unregistered sales of TRX in 2023. Sun was accused of illegally raising $31 million through unregistered token sales and manipulating secondary markets to inflate the token's price.

However, the case was paused in February, shortly after President Trump's inauguration, raising criticisms of political involvement in regulatory enforcement. 

Sun has also recently become involved in crypto projects related to President Trump and his family. He poured $75 million into Trump's World Liberty Financial (WLFI) in November, becoming the project's largest investor and an advisor to the company.

Before the presidential dinner held in May for top holders of the TRUMP token, Sun emerged as the largest holder of the meme coin, with a $21 million stake at the time. This may have granted him an exclusive session with the President during the gala.

TRON Price Prediction: TRX jumps but fails to break $0.296 hurdle

TRX is up 3% on the day following the announcement. The Layer 1 token bounced off the 50-day Simple Moving Average (SMA) support, rallying to the resistance level near $0.296 before seeing a rejection. A successful move above $0.296 could see TRX move more than 12% to $0.333.

TRX/USDT daily chart

On the downside, TRX could find support at $0.260 if the 50-day SMA dynamic support fails.

The Relative Strength Index (RSI) is above its neutral level and testing its moving average line, while the Stochastic Oscillator (Stoch) is testing its neutral level. A successful crossover in both indicators will strengthen the bullish momentum.