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HomeAltcoinsTron founder proposes its plan to buy assets of Credit Suisse

Tron founder proposes its plan to buy assets of Credit Suisse

Justin Sun, founder of TRON on October 4, offered a proposal to purchase stock or assets from Credit Suisse via tweet to bring it into Web3.

credit suisse

It’s unclear whether Sun truly wants to buy the legacy bank and its assets, as FTX has done with failed crypto firms, or if this was just a flippant remark ridiculing the struggling bank.

The stock price of Credit Suisse Group AG has fallen 60% so far this year, and on October 3 its bonds hit record lows amid mounting uncertainties about the bank’s capacity to restructure without taking on further debt.

Credit Default Swaps (CDS), popularly known as the cost of purchasing insurance against Credit Suisse defaulting on its debt, have recently increased to record highs, signalling the market is preparing for a collapse.

Senior executives within the company will reveal a restructuring plan at the end of this month in an effort to stabilise operations in light of trading losses, its exposure to the Archegos scandal, in which the New York-based hedge fund manager defaulted on margin loans to the tune of $10 billion and numerous lawsuits.

“In order to fund this very aggressive pivot toward a solid business, we will be doing asset sales and divestitures.”

Johann Scholtz, a banking analyst, downplayed the possibility of the 166-year-old bank falling, especially in light of claims that this would resemble a Lehman Brothers-style disaster. Johann said a collapse was unlikely.

“Credit Suisse is adequately capitalised – at the very least, its capital adequacy complies with that of its peer group. Credit Suisse’s strength in liquidity is underrated.”

Sun stated that he is prepared to acquire Credit Suisse asset sales and divestitures in order to incorporate them into Web3. Nevertheless, the TRON founder did not go into detail on what this might entail.

Through a video link, Sun recently addressed the Upbit Developer Conference (UDC) in

Macau and claimed that Web3 offers a wide range of wealthy opportunities. Sun further disclosed that TRON is actively entering the Web3 space in an effort to seize value at an early stage.

“The TRON ecosystem is working to democratise finance and promote a better environment for art, games, media, etc. in Web 3.0 via numerous domains such as community, technology, and asset liquidity.”

The entrepreneur anticipates TRON’s user base to become as much as Ethereum, by the end of next year, based on its current rate of 50 million newly registered accounts annually.

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