n a recent X post, Justin Sun, the creator of the TRON blockchain platform and CEO of BitTorrent has made an offer to engage in discussions with the government to acquire the nation’s remaining assets. This initiative is intended to reduce any disturbances in the market caused by Germany’s sales of Bitcoin obtained from a criminal case back in 2021.
Background Information on Germany’s Bitcoin Reserves
In January 2021 German authorities seized more than 150 million euros of Bitcoin following the arrest of Banmeet Singh, a narcotics dealer. Since that time data provided by Arkham, a blockchain analytics firm reveals that from November 2023 to February 2024 Germany has been actively selling portions of its holdings, on cryptocurrency exchanges such as Kraken, Bitstamp and Coinbase. Reports suggest that the country has sold $738 million worth of BTC during this period. Germany still possesses about 40,359 BTC ( it can be checked on Arkham )which is worth around $2.3 billion at current market rates. Justin Sun has expressed interest in acquiring the remaining Bitcoin through negotiations.
Regarding Justin Sun and TRON
Justin Sun is a well-known name in the cryptocurrency industry. In 2017 he established TRON. An operating system built on technology with the goal of creating a global free content entertainment system. Over time TRON has evolved into one of the leading platforms, for contracts based on locked value. As the CEO of TRON and BitTorrent, Sun’s total worth is estimated at $1.4B according to Arkham’s data. The majority of his wealth comes from his investments, in TRX, the token of the TRON network, where he holds $280 million worth.
Examining the Viability of the Proposed Agreement
Although Justin Sun’s offer could potentially stabilize the market affected by Germany’s sales there are concerns about whether he has funds for such a large purchase. With Germany’s remaining BTC valued at $2.3 billion, it surpasses Sun’s known worth. It is crucial to have clarity on the funding source and transaction structure being suggested. There is also uncertainty on whether German regulators would approve an off-market sale of conducting an auction on exchanges. Both parties would need to engage in discussions and negotiations to determine if this deal is feasible. The payment terms must be transparent to meet standards well. In essence, additional information from Justin Sun is awaited to make an assessment of this proposal.
