The founder of Tron, Justin Sun, is a well-known actor within the cryptocurrency space. Now it looks as if he is attempting to cement his position as one of the industry’s leading actors with a fresh investment in Poloniex. Specifically, this investment supposedly was one of several that made an acquisition of Poloniex possible.
Justin Sun reveals investment stake in Poloniex
First, however, some context may be in order. As regular cryptocurrency observers will know, Poloniex is a cryptocurrency exchange that has been under the ownership of the financial technology company Circle.
Recently, however, Circle sold Poloniex. Furthermore, Poloniex is said to be the 11th largest cryptocurrency exchange by volume, meaning that it is an important player in the cryptocurrency exchange sector.
Now it is clear that Justin Sun is one of the several investors that are behind Poloniex’s recent acquisition. Sun is most known for his involvement with his own organization, the Tron Foundation.
The reveal that Sun is one of the investors behind Poloniex’s acquisition came in a recent livestream on the official Poloniex Twitter profile, on November 12th. With that said, however, Sun has also made assurances that Poloniex will continue to operate “independently” from Sun’s Tron Foundation.
Will this reenergize Poloniex?
Moreover, it is worth noting that this reversal comes after much speculation on the matter. Back in October, Sun went so far as to refute some of the rumors that he was leading an investment group behind the Poloniex deal.
It would now appear that this refutal was merely a smokescreen by Sun. Specifically, it has now become clear he was indeed in the process of investing in the company. Additionally, this comes at a pivotal time for Poloniex.
Although the exchange is still the 11th largest cryptocurrency exchange in the world by volume, and had – at the time of writing – processed $19.5 million worth of crypto over the last 24 hours, the company is facing some dire straits.
The exchange platform was one of the dominant online cryptocurrency exchanges mere years ago. Today, however, it facilitates less than 1% of the global cryptocurrency trading volume. Granted, this is still a sizable amount, but a far cry from the exchange’s former volumes.
As such, it remains to see whether Sun’s investment will be enough to rejuvenate Poloniex. Furthermore, one should also note that although Poloniex will supposedly operate independent from Tron, Tron was listed on the exchange yesterday.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.