Tron, the cryptocurrency project led by Justin Sun, is set to go public in the U.S. by merging with SRM Entertainment, potentially transforming its standing in the financial market.
Merger Details
Tron has opted for a reverse merger with SRM Entertainment, which is already listed on the Nasdaq exchange, instead of a traditional initial public offering (IPO). The new company will operate under the name Strategy of Tron, with an initial investment of $210 million worth of TRX from Justin Sun's digital asset platform.
Cryptocurrency Market Reaction
Following the news, the price of Tron (TRX), the eighth-largest cryptocurrency by market cap, rose nearly 5%. It is currently trading at around $0.28, according to CoinGecko data. The Financial Times report temporarily allowed TRX to overtake meme coin Dogecoin (DOGE) by market cap, with both cryptocurrencies valued at approximately $26.5 billion.
Legal Issues and SEC
Earlier in 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Justin Sun, accusing him of manipulating the price action of his token. However, in February, the SEC reported that it had dropped the charges against Sun as part of its efforts to unwind aggressive crypto enforcement pursued by former SEC head Gary Gensler.
The merger between Tron and SRM Entertainment could mark a critical step in improving Tron's market position, despite previous legal troubles. The significant investment also emphasizes the founder's confidence in the company's future.
