Chris Curl,
Editor
June 19, 2025
Tron’s making headlines again—this time with plans to go public in the U.S. through a $210 million reverse merger with SRM Entertainment (NASDAQ: SRM). The deal would create a new entity, Tron Inc., that plans to hold large amounts of TRX (Tron's native token) on its balance sheet, similar to how MicroStrategy (NASDAQ: MSTR) famously hoards Bitcoin.
The move is being steered by Dominari Securities (DOMH), an investment bank with ties to the Trump family. Unsurprisingly, the announcement sent both TRX and SRM shares soaring.
But here’s the catch: Tron’s founder, Justin Sun, has a long—and controversial—history that’s raising more than a few eyebrows.
Justin Sun: Crypto Whiz or Master Manipulator?
If you’ve followed the crypto space, you know Justin Sun isn’t exactly a stranger to drama. In fact, he's practically a magnet for it.
- SEC Fraud Charges: Back in March 2023, the U.S. Securities and Exchange Commission (SEC) hit Sun with some serious allegations. They accused him of selling unregistered securities (TRX and BTT), faking trading volume through wash trading, and paying celebrities to promote his tokens without disclosing those payments.
- Wash Trading Scandal: The SEC claimed Sun ordered his team to execute over 600,000 fake trades to inflate TRX’s market activity—essentially trying to manufacture hype.
- Celebrity Shilling: Remember those celebrity crypto endorsements from Lindsay Lohan, Jake Paul, and Akon? Turns out, they were allegedly paid by Sun’s team and didn’t disclose it—another federal no-no.
- Regulatory Dodgeball: While promoting his tokens across the U.S., Sun reportedly tried to sidestep regulators by living abroad during key enforcement windows. That’s not illegal on its own—but it didn’t help his image.
And Then There’s the Trump Coin Saga…
As if things weren’t messy enough, there’s Sun’s eyebrow-raising investment in $Trump coin.
In late 2024, while still under SEC investigation, Sun became the largest holder of crypto tokens issued by World Liberty Financial, a Trump-family-affiliated project. He reportedly poured in $75 million.
That’s on top of the $18.6 million in $Trump coin he allegedly owned. He even bragged about being the largest individual holder.
That investment came just months before the SEC mysteriously paused its case against him in early 2025.
What makes this even sketchier?
- The $Trump coin deal brought a huge payday to Trump and got Sun a front-row seat at exclusive MAGA crypto galas.
- Critics say it looks a lot like an attempt to “buy influence”—especially considering the SEC’s sudden change in tone afterward.
Advocacy groups have since called foul, pointing to the timeline as a potential example of regulatory capture. In plain English: did Sun trade money for leniency?
I criticized Donald Trump for launching a memecoin as I was concerned it set a dangerous precedent – namely, that it would be a vehicle for buying political influence. That concern is becoming more justified by the day.
So… Why Is Tron Going Public Now?
With all of this still swirling around, Tron’s IPO timing feels... ambitious. The platform may be trying to capitalize on bullish crypto momentum—and Sun’s deep-pocketed connections—but the lingering questions about ethics, influence, and regulation aren't going away.
For investors, this IPO could be an exciting opportunity—or a risky bet tied to a founder with more baggage than a Samsonite warehouse.
I’m betting on the latter and would avoid anything with Sun’s fingerprints. This is why I haven’t bought Tron or $Trump coin and will continue to guide my Crypto Cycle readers to safer options.
Keep coming back,
Chris Curl
Editor, Daily Profit Cycle