Cryptocurrency

Justin Sun pulls an FTX and offers to buy ailing Credit Suisse’s assets

Zegex

Founder of TRON Justin Sun You have tweeted an offer to purchase Credit Suisse assets or shares and bring them into Web3.

Whether this was a flippant comment mocking the distressed bank, or Sun’s genuine ambition to acquire the legacy bank/its assets in the same way FTX “saved” the distressed cryptocurrency business. It is unknown if they have it.

Credit Suisse seeks restructuring

Year-to-date, Credit Suisse Group shares are down 60% and bonds hit a record low on October 3rd. This comes amid growing concerns over the ability of banks to restructure without further borrowing.

The cost of buying insurance against Credit Suisse’s default (also known as credit default swaps (CDS)) has recently hit a record high, suggesting the market is gearing up for a collapse. doing.

Exposure to Archegos scandal in which New York-based hedge fund manager defaulted on $2 million margin loan amid trading losses $10 billionand multiple lawsuits, senior management Internally, we plan to announce a restructuring plan at the end of this month to stabilize the business.

“We plan to sell and sell assets so that we can fund this very strong pivot that we are trying to achieve towards a stable business.”

bank analyst Johann Scholz Downplaying the risk of the 166-year-old bank going bankrupt, especially the story of this being a Lehman Brothers-type event, he said bankruptcy is unlikely.

“Credit Suisse is well capitalized. At worst, capital adequacy is on par with peers. Liquidity is an undervalued strength of Credit Suisse.”

Pivoting TRON to Web3

Sun has commented that it is ready to scoop up Credit Suisse asset sales and divestitures and incorporate them into Web3. However, the TRON founders didn’t explain exactly what this would entail.

Sun recently held in Macau Upbit developer conference (UDC) said via a video link that Web3 has a wealth of opportunities.

He then revealed that TRON is aggressively moving into the Web3 space to capture value early.

“Across multiple areas such as community, technology and asset liquidity, the TRON ecosystem strives to democratize finance and promote a better environment for Web 3.0 art, games and media.”

Based on TRON’s current 50 million new accounts opened annually, entrepreneurs expect it to rival Ethereum’s user base by next year.

Posted In: Tron, Macro, People

Related Articles

Back to top button