Sun Yuchen is going public! This stock surged 647% overnight
The digital asset platform Tron, founded by Sun Yuchen, plans to go public through a reverse merger with Nasdaq-listed company SRM Entertainment, with its stock price soaring 647% overnight. This transaction is being handled by Dominari Securities, which has close ties to the Trump family, and the new company is expected to be renamed "Tron Inc." with an injection of $210 million in token assets. Sun Yuchen is known for his controversial actions, and this listing has attracted market attention
After making a high-profile appearance at Trump's cryptocurrency dinner, crypto tycoon Sun Yuchen's digital asset platform Tron is set to go public through a reverse merger, with the shell company surging 647% overnight. Interestingly, the operator behind this move is an investment bank closely related to Trump's sons.
According to a report by the Financial Times on June 16, Sun Yuchen's crypto platform Tron has reached a reverse merger agreement with Nasdaq-listed SRM Entertainment. The new entity plans to inject $210 million worth of token assets and will be renamed "Tron Inc." This transaction occurs at a critical time when the U.S. Securities and Exchange Commission (SEC) has paused its lawsuit against Sun Yuchen for alleged market manipulation, and it is being orchestrated by Dominari Securities, closely associated with the Trump family.
Dominari Securities, the operator of this reverse merger, is headquartered in Trump Tower, and Donald Trump Jr. and Eric Trump, the eldest and second sons of former President Trump, joined the advisory board of its parent company, Dominari Holdings, in February this year. The company's stock price had previously surged 580%, raising regulatory concerns before the announcement. Insiders also revealed that Eric is expected to hold a significant position in the newly established "Tron Inc."
As a shell company, SRM Entertainment's stock price soared 647% overnight following the merger news.
It is reported that "Tron Inc" will adopt the strategy of MicroStrategy founder Michael Saylor, purchasing and holding Tron tokens to position itself as a leveraged digital asset investment tool.
The Glamorous Transformation of a Controversial Figure
Sun Yuchen has long been regarded as one of the most controversial figures in the cryptocurrency industry, known for his eye-catching promotional tactics. In 2019, he spent $4.6 million to win a charity auction for lunch with Warren Buffett but ultimately stood up the investment guru. Last year, he spent $6.2 million on a banana art piece taped to a wall, which he then ate in front of the world's media.
Recently, he also made a high-profile appearance at Trump's dinner. An article by Wall Street Insight mentioned that the dinner invited 220 of the largest holders of "Trump coins," with Sun Yuchen, as the "top brother," becoming the center of attention. Not only did Sun Yuchen interact closely with Trump at the dinner, but he was also ceremoniously invited on stage to wear a $100,000 Trump-branded gold watch gifted by Trump, stealing the spotlight.
Just two years ago, Sun Yuchen was a key focus of U.S. regulatory authorities. In 2023, the SEC charged Sun Yuchen and his three companies (including Tron) with selling unregistered securities and manipulating the market However, when Trump signaled a lenient regulatory attitude towards the cryptocurrency industry, the SEC and Sun Yuchen jointly submitted a motion to the court in February of this year to suspend the lawsuit to explore potential settlement options.
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