TLDR:
- Justin Sun controls roughly 60 billion TRX tokens, representing 63% of the total supply in circulation.
- HTX acquisition allows Sun to channel user deposits into JustLend, using TRX as near-unlimited collateral.
- The Tron Inc. Nasdaq reverse merger lets Sun swap on-chain tokens for U.S. dollars without crashing markets.
- Sun’s WLFI investment created an off-exchange token swap that converts TRX exposure into tradable assets.
Justin Sun’s financial maneuvers have drawn scrutiny after a detailed analysis revealed how the Tron founder may be converting illiquid TRX holdings into hard assets.
Crypto analyst Punk2898 outlined several methods Sun allegedly uses to manage his vast token reserves. Sun reportedly controls around 60 billion TRX tokens, valued at over $20 billion, but faces major liquidity challenges due to the sheer size of his position in the market.
The Mechanisms Behind Sun’s Liquidity Strategy
Sun’s approach to managing TRX appears to draw lessons from the FTX collapse. According to Punk2898, FTX once held a large TRX position and could not aggressively sell it.
Instead, FTX continuously bought back TRX on secondary markets to support the price. It then used third-party platforms to collateralize the tokens and borrow stablecoins, creating a steady flow of liquid capital.
Sun’s acquisition of Huobi, now rebranded as HTX, appears to serve a similar function. Users deposit USDT into HTX expecting high-interest returns.
Those funds are reportedly channeled into Aave or JustLend to capture yield spreads. HTX then pockets the interest differential, while JustLend collateral remains largely in TRX — a token Sun controls in virtually unlimited supply.
The USDD stablecoin adds another layer to this structure. USDD is backed by 10.9 billion TRX and approximately 19.6 million USDT, supporting around 745 million USDD in circulation.
Sun uses TRX as collateral to mint USDD, which then attracts real dollar deposits through high annualized yields. This effectively turns his own tokens into a mechanism for pulling in external liquidity.
Sun’s investment in World Liberty Financial and the TRUMP memecoin also fits into this pattern. He reportedly invested over $40 million in WLFI, which then bought TRX in return.
Sun can liquidate his WLFI holdings freely, while WLFI holds TRX. The analyst described it as an off-exchange swap that heavily favors Sun’s position.
The Nasdaq Reverse Merger and Long-Term Conversion Plans
The most direct conversion method came in July 2025 through a Nasdaq reverse merger involving Tron Inc. The deal essentially exchanged on-chain TRX tokens for a U.S. stock ticker.
U.S. stocks were issued to raise dollars, which were then used to buy TRX from Sun directly through over-the-counter trades.
Those TRX tokens then entered the Nasdaq company’s treasury, while the dollars went to Sun. The analyst compared this to Michael Saylor’s Bitcoin treasury strategy but with a key difference—Saylor buys existing Bitcoin, while Sun effectively creates TRX. The structure allows Sun to convert crypto holdings into Wall Street assets without crashing the open market.
Punk2898 noted that Sun’s core task, for years to come, remains converting his 60 billion illiquid TRX into Bitcoin and Ethereum.
Every strategy described feeds into that single objective. Each move builds infrastructure that slowly shifts value from TRX into harder, more widely accepted assets.
The post How Justin Sun Is Quietly Converting $20 Billion in TRX Into Hard Crypto Assets appeared first on Blockonomi.
Source: https://blockonomi.com/how-justin-sun-is-quietly-converting-20-billion-in-trx-into-hard-crypto-assets/
