Hong Kong-based crypto entrepreneur Justin Sun has decided to take his blockchain project, Tron, public in the United States. He will do this through a reverse merger with SRM Entertainment, a company already listed on the Nasdaq stock exchange. Both companies announced the deal on Monday.
This move allows Tron to join the U.S. stock market without going through the lengthy and expensive process of a traditional Initial Public Offering (IPO). Instead, Tron will merge with SRM Entertainment and instantly become a publicly listed company.
How the Deal Works
SRM Entertainment and Tron signed a special agreement to make this happen. The deal brings in $100 million from a private investor. This money will help Tron build its new public company and support its business plans. SRM will issue:
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100,000 shares of preferred stock, which can later convert into 200 million regular shares.
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220 million warrants, which give the right to buy more shares at $0.50 each.
If investors exercise all these warrants, the company could raise up to $210 million in total. This would provide Tron with a large amount of capital to grow and support its operations.
Justin Sun will not officially run the new company but will serve as an advisor. SRM’s current CEO, Rich Miller, will stay in his role. The company will also launch a program allowing people to stake (lock up) their TRX tokens and receive dividends. In simple terms, shareholders could earn extra rewards just by holding the stock.
Why Use a Reverse Merger?
A reverse merger offers many advantages. Normally, companies must spend months preparing for a traditional IPO. They must file many documents, face strict reviews, and deal with unpredictable market conditions.
By using SRM Entertainment, which already trades on Nasdaq, Tron avoids many of these hurdles. The reverse merger allows Tron to go public much faster and at a lower cost. This process often takes only a few weeks instead of several months.
Strong Reaction From Investors
The news of the merger caused a strong reaction in both the stock and crypto markets.
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SRM Entertainment’s stock price skyrocketed by more than 500% in one day. At its highest point, the stock reached almost $9.45 before settling slightly lower.
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TRX, Tron’s cryptocurrency token, also gained between 5% and 7%. Its price climbed above $0.28 as investors grew excited about the company’s future.
This positive response showed that investors welcomed Tron’s plans to enter the U.S. market and saw potential for future growth.
Regulatory Challenges
The U.S. Securities and Exchange Commission (SEC) still plays a big role in this process. In 2023, the SEC accused Justin Sun of breaking securities laws. The agency claimed that he manipulated TRX prices and sold unregistered securities.
In early 2025, the SEC paused its case, allowing Sun to move forward with fewer legal obstacles. However, the SEC has not dropped the charges entirely. It still holds the power to reopen the investigation if it chooses.
Because of this, Tron must follow strict legal rules as it builds its public company. The company will need strong security for its tokens, clear financial reporting, and careful handling of customer funds.
Justin Sun’s Political Connections
Justin Sun has built strong ties to some political figures in the United States. He invested $75 million in a Trump-linked crypto firm called World Liberty Financial. He also attended events organized by people close to former President Donald Trump.
The investment bank handling the merger, Dominari Securities, has advisors who include Trump’s sons. These connections could help Tron attract investors who support Trump and his political movement.
However, this political link may also create challenges. Some investors who prefer to avoid politics might choose not to invest in Tron because of its close ties to Trump’s circle.
Competing With Other Crypto Companies
Tron’s entry into the U.S. market puts it in competition with other crypto-related companies that already trade on the stock exchange. These include:
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MicroStrategy, which focuses on buying Bitcoin as a treasury asset.
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Marathon Digital, which mines Bitcoin.
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Coinbase, which operates one of the largest crypto exchanges.
Tron will take a different approach by focusing on staking rewards and stablecoin settlements. Instead of just holding Bitcoin, Tron plans to buy and hold its own token, TRX. The company will also offer dividends from staking rewards, giving investors a steady source of income.
Tron’s Business Strength
Justin Sun launched Tron in 2017. Since then, the project has grown into one of the world’s largest blockchain networks. Today, Tron supports:
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$78.7 billion in stablecoins operating on its network.
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Over 310 million user accounts worldwide.
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More than $20 billion in daily transaction volume.
These strong numbers show that Tron has built a large, active, and global user base. The network handles huge amounts of money every day, making it one of the busiest blockchain platforms in the world.
Tron’s success in stablecoins also strengthens its business. Many people use Tron’s network to send money across borders quickly and cheaply. This makes it useful for financial services, especially in countries where banking systems remain limited.
Risks Ahead
Even though investors seem excited, Tron still faces many risks:
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Stock Dilution: The company plans to issue millions of new shares and warrants. If too many shares enter the market, it could lower the value of existing shares.
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Regulatory Risk: The SEC still has the option to restart its case against Justin Sun. If legal trouble returns, it could hurt investor confidence.
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Market Volatility: Crypto prices often swing wildly. If TRX prices fall, the company’s financial position could weaken.
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Execution Challenges: Building a stable, well-regulated public company takes hard work. Tron must develop strong systems for handling tokens, reporting finances, and paying dividends.
Short-Term Outlook
In the next few months, several key events will shape Tron’s future:
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The merger will need approval and completion.
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Investors will watch for clear plans on how the company will manage its treasury.
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The company aims to launch its staking and dividend programs.
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The SEC’s response will play a critical role in determining long-term stability.
If Tron succeeds in handling these tasks, it could attract even more investors looking for crypto exposure in a regulated stock format.
Long-Term Vision
If successful, Tron’s public listing could become a model for other blockchain projects. Instead of relying on private funding or unstable token prices, Tron will use the public stock market to raise money and build trust.
By paying dividends from staking rewards, Tron offers investors a new kind of income-generating crypto investment. Investors who want steady returns rather than just hoping for price growth may find this model very attractive.
Justin Sun’s strategy combines the power of public markets, crypto innovation, and political branding. If he executes well, Tron could stand alongside companies like Coinbase and MicroStrategy as one of the most recognized crypto names on Wall Street.
Conclusion
Justin Sun’s decision to take Tron public through a reverse merger with SRM Entertainment marks a bold new chapter for the crypto industry. The deal allows Tron to enter U.S. markets quickly while raising hundreds of millions in fresh capital.
Investors welcomed the move with strong gains in both SRM stock and TRX tokens. However, Tron must now carefully navigate legal, financial, and operational challenges to deliver on its promises.
If Sun succeeds, Tron could become one of the most innovative crypto companies to trade on the U.S. stock exchange, offering investors both growth potential and regular income through staking rewards.
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