The crypto firm Tron Group is making a remarkable move by planning to go public in the US through a reverse merger, according to reports. This decision is followed by the US’ suspension of investigation into crypto tycoon and founder of Tron Group, Justin Sun.
The crypto firm will become public in a reverse merger with SRM Entertainment, a Nasdaq-listed branded merchandise and media company. The deal was coordinated by Dominari Securities, a US-based boutique investment bank. The investment firm is connected to the US President Donald Trump and his son Eric Trump.
What is a reverse merger in crypto?
A reverse merger is a strategy where a private crypto company goes public by integrating with an existing publicly listed company, instead of seeking a traditional Initial Public Offering (IPO).
Why did the US SEC sue Justin Sun?
In March 2023, the US Securities and Exchange Commission (SEC) allegedly sued Justin Sun and his companies for allegedly committing fraud and market manipulation for Tron’s TRX token. The commission also pointed out that the crypto firm has offered unregistered securities. However, Sun had denied the wrongdoing.
Tron plans to form a MSTR-type company
The Tron executive reposted a story on the company’s plans to go public, stating “Tron MSTR”. According to reports, Tron is expected to form a MSTR-type company with Eric Trump. MSTR is the stock ticker symbol of Strategy, the largest corporate owner of Bitcoin, founded by Michael Saylor. Moreover, Eric Trump is anticipated to take charge of a position at Tron Inc, the soon-to-be publicly merged company of Tron in the US.
What does the new initiative mean for Tron?
By going public, Tron will buy and hold its crypto token, TRX, and contribute $210 million of tokens to the company. For Tron, becoming a publicly traded entity is a major strategic shift, particularly when the US is trying to become a crypto-supportive country. As the new company will hold millions of TRX tokens, like how Strategy holds Bitcoins, Tron can likely earn public attention and credibility. Additionally, this could also support the price of the token.
What is the current price of Tron?
Tron (TRX) is trading at $0.2774, with a 3.11% dip in the last week, at the time of reporting. The token holds the 8th position in terms of market cap. Although crypto exchange Binance forecasts that the price of TRX could go up in the next year, the current price is slightly down, like other cryptocurrencies, due to the ongoing geopolitical tension in the MENA region.
Disclaimer: This website provides information only and isn’t financial advice. Do your own research before investing. Past performance doesn’t guarantee future results. Altcoin Desk isn’t liable for your financial decisions.
