Justin Sun, the founder of the Tron blockchain, said he has been working with FTX on a possible solution to the exchange’s ongoing liquidity crisis.
In a series of tweets on Wednesday, Sun said his team has been “working around the clock” to put together a solution for FTX to “initiate a path forward.”
“The ongoing liquidity crunch, despite short term in nature, is harmful to the industry development and investors alike,” said Sun in a tweet.
It is unclear whether Sun’s proposed solution will be exclusively for Tron token holders on FTX or the exchange’s entire userbase. However, some investors were hopeful that Sun could potentially bail out the now-insolvent FTX after Sam Bankman-Fried retweeted Sun’s announcement.
Earlier in the day, the Wall Street Journal reported that FTX needed $8 billion in emergency capital in order to meet investor withdrawals. After Binance walked away from a deal to acquire the exchange, many were skeptical that anyone else had the financial capacity to make investors whole.
“how much money does justin sun realistically have available? is there a world where he in some way ends up owning ftx and making users whole? feels like theres definitely some bigger plan behind this,” tweeted one user.
“I’ve clowned his excellency multiple times, but if he actually bails out ftx depositors, he will be justifiably lauded as a hero,” tweeted another.
Meanwhile, news of FTX and Alameda’s insolvency continued to rattle the market, with Bitcoin and Ethereum both down over 11% in the last 24 hours. Industry watchers anticipate that there likely will be more pain to come from the potential contagion effects of FTX through the industry.
“I have no idea how low this goes. FTX contagion is likely massive. Crypto hedge funds extinct. Many miners rekt at these levels. All leverage getting taken out,” tweeted crypto investor Stack Hodler.