On June 16, Sun Yuchen took action again, and a capital drama surrounding Tron is unfolding. This time, instead of focusing on blockchain, it targets the U.S. stock market — a reverse merger seems to indicate that Tron is about to embark on a new journey.
Shell company insider: SRM Entertainment becomes 'Tron Inc.'
Listing method: Tron plans to go public on the Nasdaq's innovation board through a reverse merger with small shareholder company SRM Entertainment, injecting Tron tokens into the shell.
Investment amount: The announcement states that SRM will spend $100 million to purchase Tron tokens, and if the warrants are exercised, the total valuation will reach $210 million. According to the Financial Times, this funding comes from Tron itself.
Stock price skyrockets: SRM's stock price jumped 300%-647% on Monday, soaring from $1.45 to a range of $6.7–9.2.
Political capital embedded: Trump's family 'friendship endorsement'.
The behind-the-scenes operator is Dominari Securities, located near Trump Tower.
The board includes members of the Trump family: Donald Trump Jr. and Eric Trump have been reported to be involved in this transaction, though Eric slightly denied publicly participating.
This transaction raises concerns about conflicts of interest; Trump's side claims that they have entrusted their children with an independent trust to avoid conflicts.
Cryptocurrency listing frenzy: Is Tron the next 'crypto ticker'?
Previously, Coinbase, mining companies, and mining machine manufacturers have all gone public in the U.S.;
Coinbase also experienced a plunge after a big surge upon listing, reflecting the susceptibility of crypto companies to market volatility;
Can Tron replicate the path of MicroStrategy or Coinbase through a reverse merger? Short-term bullish sentiment is high, but historical experience warns of significant risks.
Reverse merger vs IPO: Why did Tron choose the 'shortcut'?
Fast speed — completed in months vs IPOs taking 12–18 months;
Simplified regulatory review — skipping complex hearings, only shell qualifications are required;
More controllable valuation — the pre-negotiated valuation between both parties is not affected by market sentiment (similar to SPAC);
Low cost — no underwriting fees, simple process, and flexible arrangement of tokens and equity structure;
Policy hedging — the SEC investigation involved is paused, providing Tron with a policy safety margin.
But caution is needed, as shell companies may carry unknown debts or legal risks, leading to a potential 'shrinking' of stock prices after listing, making further financing difficult.
Sun Yuchen's gamble: reputation ups and downs and regulatory games.
Sun Yuchen has always been a controversy maker: from bidding $4.6 million for lunch to bidding $6.2 million for eating bananas, all reflecting his 'high-profile style'.
Previously sued by the SEC over TRX securities issues, but the lawsuit has been paused. Tron's move is a political card for a 'comeback';
If the listing goes smoothly, it will open the door for Tron to stabilize financing for its ecosystem; conversely, if regulations hinder it again, it may trigger a valuation collapse and reputational impact.
