Tron Founder Admits Investing in Poloniex
- Despite previously refuting the rumors, Justin Sun has admitted to being part of the investment group which acquired Poloniex.
- Sun said that the cryptocurrency exchange will operate independently from his firm, the Tron Foundation.
Justin Sun, founder of Tron. CoinDesk
The founder of crypto platform Tron, Justin Sun, is a part of the investor group which acquired crypto exchange Poloniex from fintech firm Circle, Sun admitted on Twitter on Tuesday.
Speaking at a livestream event published by the official Poloniex Twitter account, Sun said he was one of the investors in the exchange, and noted that the exchange is operated independently from his company, the Tron Foundation.
Previously he refuted reports that he was leading investment group behind the acquisition of cryptocurrency exchange.
During the Tuesday livestream, Sun said:
“Poloniex is one of the biggest exchanges in our industry. I think the exchange is going to grow and that’s why we collaborate with it to have more initiatives.”
Cryptocurrency exchange Poloniex, which was founded in 2014, was acquired by Circle in early 2018 for around $400 million. This October, the exchange announced that it will be spinning out from Circle as an independent company, called Polo Digital Assets, and that it will be focusing “on the needs of global crypto traders “.
The exchange further said that it had plans to spend more than $100 million to shift away from the U.S. to the global market.
Even though Sun stated that the exchange will operate independently from his Tron Foundation, his investment follows on the heels of Tron’s listing on it.
As the exchange announced on Sunday, its customers can now start posting limit orders for TRX/Bitcoin (BTC), TRX/Tether (USDT), and TRX/USD Coind (USDC).
- Binance CEO Changpeng “CZ” Zhao announced the fund on Monday, noting that it will target potentially strong projects that are facing a liquidity crisis.
- Tron founder Justin Sun was amongst the first to express his support for the fund by saying that Tron, Huobi Global, and Poloniex will join the initiative.
Binance CEO Changpeng Zhao. CryptoMonedaseICOs
- FTX has allowed withdrawals for TRX, BTT, JST, SUN, and HT after reaching an agreement with Tron, which provided $13 million worth of assets to facilitate such swaps.
- Additional funding for such swaps will be provided on a weekly basis at 14:00 UTC, with the amount injected based on factors such as withdrawal demand.
- CEO Changpeng Zhao pledged on Tuesday to implement a Proof-of-Reserve mechanism at Binance to provide full transparency, and called on all industry players to follow suit.
- KuCoin, Poloniex, Huobi, and OKX were among the first crypto exchanges that promised to publish proof of their reserve holdings within a month.