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Chinese crypto entrepreneur and founder of Tron, Justin Sun, said he would spend $1 billion of his own money on buying assets from Digital Capital Group (DCG). He, however, failed to specify the assets he intends to buy but instead clarified that the investment was “depending on their evaluation of the situation.”He confirmed this information on Twitter, where he responded by saying, “Looking to make the tough times a bit easier.”.
DCG is the parent company of the troubled crypto lender Genesis, which happens to owe over $3 billion to creditors. This is due to the collapse of cryptocurrencies LUNA and TerraUSD (UST) in May last year, which caused some companies, such as Three Arrow Capital(3AC), who had borrowed from Genesis to default on their loans leading to losses. Resultantly, Genesis ceased customer withdrawals on November 16 last year, stating that the withdrawals exceeded their liquidity.
DCG is also a parent company to other high-profile crypto firms such as Grayscale, the largest crypto asset manager globally, and CoinDesk, a crypto news site. It boasts over 160 companies in its venture capital portfolio, as listed on its website, in addition to $50 billion in assets under management as of 2021. However, DCG is looking to sell part of that portfolio to raise funds to save its troubled subsidiaries.
What Drives Justin Sun Interest in Struggling Crypto Businesses?
Sun seems to have an affinity for distressed crypto firms. Last year, he said that he would also provide billions in aid to FTX when the company was seeking emergency funding. This offer came right after Binance CEO, CZ, backed out of the agreement to fund FTX, citing reports of misappropriation of customers’ funds after due diligence checks. Similar to DCG, Justin specified that the funding would be subject to full due diligence and that it would be a good time to have unity in the crypto industry. Nonetheless, the funding did not occur due to the discovery of problems beyond control after a full evaluation of the situation.
It is, however, common for big crypto players to express interest in funding distressed crypto firms whose financial status and market standing are questionable. Still, most of such deals do not always follow through.
Justin Sun is the founder of TRON, a blockchain network, as well as the global advisor to Huobi, a crypto exchange platform based in South Korea. He is speculated to have a net worth ranging from $256 million to $3 billion, which his spokesperson said consists of crypto and traditional currencies.
Altcoins To Consider As Crypto Rally Extends
Investors have been treated to a bear market rally over the last couple of weeks, notwithstanding dismal projections by experts that the long-standing crypto winter may last until the end of 2023.
As cryptos reach higher levels from 2022 lows, investors may consider up-and-coming altcoins in their presales. These new presale tokens allow market participants to be early adopters and realize bigger gains when they list on exchanges.
Meta Masters Guild (MEMAG)
The entrance of Meta Masters Guild into the play-to-earn (P2E) sector of the blockchain industry is a game charger. This gaming platform promises to take P2E by storm, pushing renowned platforms like Axie Infinity, STEPN, The Sandbox and Decentraland, among others, out of the way.
Meta Masters Guild claims to be the “first mobile-focused Web3 gaming guild” working on a mission to build a high-quality blockchain-integrated P2E ecosystem. Although the concept is play-to-earn, the platform wants to ensure everyone can play the games and enjoy spending time doing so.
Users will earn rewards not only for playing games but also for their contributions to the ecosystem. This can include game development, supplying in-game assets to popular players, content creation, and participating in community events and giveaways.
Investors can buy MEMAG in an ongoing presale that has already raised $166k, selling one token for 0.007 USDT.
FightOut (FGHT)
Move-to-Earn (M2E) coins continue to gain popularity in the crypto industry as they strive to help people lead healthy lifestyles. Projects like STEPN, SweatCoin and Step App currently rank top among this asset class. However, they are yet to fully decentralize the fitness industry and allow everyone to benefit, including the stakeholders and the clients – something FightOut believes it will achieve.
FigthOut recognizes that the future of M2E lies within Web3, with tools that harness monetary value for both users and stakeholders (gym owners). Gamification of M2E not only creates value but encourages people to build positive habits.
With the new ecosystem, FightOut hopes it will remove barriers to entry that come in the form of Web3 knowledge and expensive starter NFTs associated with platforms like STEPN.
The money raised from the presale will enable FightOut to build an M2E fitness app and gym chain that gamifies the fitness lifestyle, where users will earn rewards for completing workouts and challenges.
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