The founder of TRON (TRX), Justin Sun, has indicated that he can put $ 1 billion in Digital Currency Group (DCG). DCG is a company that several others crypto companies has under it. For example, it is the parent company of Genesis, the crypto lending platform that still has a large outstanding debt with Bitvavo.
Crypto founder offers saving hand
Sun made the statements in an interview with Reuters. In it he indicated that he wanted to invest no less than 1 billion dollars in DCG. With this he would like to buy up various parts of the conglomerate. It is not clear which parts Sun exactly has in mind.
The cash injection would suit DCG well. Genesis has large debts outstanding. In total, the platform about $3 billion have debts. 280 million euros of this still needs to be done Battle repay.
Bitvavo has already received an offer from Genesis to repay the debt. Genesis would 70% in term able to pay back. Bitvavo declined this offer because Genesis would have enough funds to pay off the entire debt.
Good news for Bitvavo?
The fact that Sun claims to be able to pump 1 billion dollars into DCG does not mean that this will actually happen. The founder of TRON is known for cleverly drawing attention in situations like this.
At the time of FTX’s collapse, Sun made a similar offer. He then said to work with the exchange to a solution. But who it crypto news know that that solution never came.
A $1 billion injection could nevertheless mean good news for creditors like Bitvavo. This makes it more likely that the $3 billion gap at Genesis can be closed. Although Bitvavo has already indicated that Genesis currently already has enough resources to pay off the total debt.
