The Layer 1 blockchain plans to go public through reverse merger with a Trump-linked firm.
Layer 1 blockchain Tron, which boasts a complete worth locked (TVL) of $5 billion, on Monday introduced plans to go public, elevating political questions on President Donald Trump’s potential affect attributable to founder Justin Solar’s ties to the Trump household.
In accordance with the Monetary Instances (FT), Tron plans a reverse merger with SRM Leisure, an organization that was listed on the NASDAQ in 2023. A reverse merger permits an organization to go public at a decrease price and with much less inventory dilution than a standard preliminary public providing (IPO).
The deal is being managed by Dominari Securities, an funding agency with ties to the Trump household – Bloomberg reported earlier this 12 months that each Donald Trump Jr. and Eric Trump had joined as backers.
Furthermore, Eric Trump is anticipated to take a job within the new firm (Tron, Inc.), which can maintain $210 million price of Tron’s native token, TRX, FT reported. Shortly after the announcement, TRX spiked by 3% to $0.28, whereas SRM shares jumped greater than 500% on the day to $9.
The announcement has sparked backlash on social media, largely attributable to Solar’s well-known ties to the Trump household. He has invested round $75 million in World Liberty Monetary, a crypto challenge backed by President Trump. This transfer, Forbes reported, netted the Trump household round $400 million.
The connection has additionally raised questions on Trump’s affect over Solar’s determination to IPO – and even whether or not it performed an element within the dismissal of earlier regulatory challenges. In 2023, Solar was charged by the US Securities and Change Fee (SEC) with civil fraud – nonetheless, earlier this 12 months, following Solar’s large buy of WLFI tokens, the SEC paused its probe.
“Am I getting this right?” a preferred crypto dealer who goes by Clemente stated on X this morning. “1. Tron investigated by SEC for market manipulation, 2. Justin Sun becomes top holder of $TRUMP and World Liberty Fi, 3. Investigation is dropped, 4. Tron goes public via reverse merger, with Eric Trump taking a role at the company. Crime season is here.”
In the meantime, some marvel if this deal will grow to be a speaking level for Democrats, who’ve known as for tighter crypto regulation currently.
“There’s a lot of political complexities given Dominari Securities and Eric Trump’s involvement, and given the current political environment in the US, this may polarize institutional sentiment,” Chuck Zhang, CFO of PolyFlow, instructed The Defiant.
He added that if the deal is well-executed, it might elevate TRX’s institutional profile, however cautioned that “investors should watch for legacy liabilities, political framing and execution risks very carefully.”
Tron didn’t instantly reply to The Defiant’s request for remark.
