Justin Sun – Altruism or Greed? – Blockchain news, opinion, TV and jobs

By Marcus Sotirio, analyst at publicly listed digital asset broker GlobalBlock

Bitcoin fell by 5% over the past weekend, starting the week at around $20,500 at the time of writing. The bearish trend in the crypto market continues, increasing the threat of an impending recession. Google’s search volume has skyrocketed in recent weeks.

Last week’s June jobs report showed that employment remained strong with higher wage growth, increasing the likelihood of a recession. This is because it results in a more powerful Federal Reserve, which must fight to reduce domestic inflation. Economic downturns typically compress P/E multiples (what investors are willing to pay for a stock, relative to earnings), which can result in lower stock prices, thus affecting crypto due to its current high correlation.

In the crypto ecosystem, concerns around liquidity problems are reduced. Justin Sun, the founder of the TRON protocol, one of the largest blockchain networks, told Sam Bankman-Fried that he is ready to provide financial support to crypto firms struggling with liquidity problems. Sun said he could spend up to $5 billion on acquisitions, after several companies approached him for help.

Sam Bankman-Fried’s FTX has previously backed Voyager Digital and BlockFi, while Binance CEO CZ is seeking help from 50-100 crypto companies, as the exchange has “the largest cash reserves in the industry.” Sun said the same number has been reached on TRON.

According to the TRON website, their DAO has $2.3 billion in reserves. “Our interests are both CeFi and DeFi platforms with a large user base,” Sun said. Sun said he thinks the worst of the current market downturn is behind us. He said: “I think the elimination process is overdue at the moment, so we have to clean it up and move forward.” i don’t think so. [the] Of course the market will be huge. As the Federal Reserve is forced to respond to high inflation and continue to withdraw funds, the macroeconomic environment could mean the liquidity crunch will last longer.

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