Justin Sun is one of the biggest scammers in the industry and will eventually be sanctioned by Chinese and American laws to atone for his mistakes.
Today I will give you a brief overview of Sun Yuchen’s rise to wealth.
During his childhood, Justin Sun traveled around with his parents.
His ancestral home is in Qingdao, Shandong, but he was born in Xining, Qinghai. When he was a few years old, he lived in Guangzhou, Shenzhen and other places, and finally went to Huizhou.
Both of Justin Sun’s parents are intellectuals. His father worked in the Huizhou City Planning Bureau and his mother worked at the Huizhou Daily.
Sun Yuchen was influenced by his surroundings and laid some foundation for his future writing and business.
In 2009, Justin Sun went to the Chinese University of Hong Kong for an exchange study for one semester.
There, he met a mentor, Chen Jianmin, who changed his thinking.
Chen Jianmin is a paranoid and radical person.
A few years later, the "Occupy Central Movement" broke out in Hong Kong, and the initiators and leaders were Chen Jianmin and several of his students.
In 2019, Chen Jianmin was sentenced to 16 months in prison, which was considered a deserved punishment.
The one on the left is Chen Jianmin
Justin Sun seems to be born with a keen sense of industry trends.
When Bitcoin first became popular in 2013, Justin Sun joined Ripple, a newcomer in the blockchain industry.
Justin Sun always seems to choose the best option.
The XRP issued by Ripple was just one of the thousands of copycat products of Bitcoin (BTC) at the time.
In 2017, the digital currency market became hot again, and many institutions issued their own tokens.
Sun Yuchen naturally would not miss such an opportunity. He hastily founded the public chain project TRON and prepared to carry out ICO (initial digital currency offering).
Justin Sun is very clear that his core ability is not technology, but marketing.
If you don’t have time to write code, just copy the code; if you don’t have time to write a white paper, just copy someone else’s and modify it.
But Sun Yuchen put a lot of effort into marketing.
At an internal meeting, Sun Yuchen demanded: “If TRON raises 200 million yuan, it will only be qualified, 250 million yuan will be barely good, and 300 million yuan will be excellent.”
In the end, TRON was valued at 1 billion and raised 600 million.
But investors don’t know that the team actually consists of only 5 people, and only 1 of them understands blockchain technology.
Just when the Tron team was excited about the financing results, seven national ministries jointly issued the "Announcement on Preventing the Risks of Token Issuance and Financing", which clearly prohibited any institution from issuing coins, and any coins that had been issued needed to be returned.
Sun Yuchen, who is abroad, is very tough: he will not back down.
The chief operating officer in China, Liu Ming, a senior of Justin Sun who he met at Peking University, was so scared that he broke out in a cold sweat and broke up with Justin Sun from then on.
Finally, under pressure from all sides, Justin Sun returned the raised funds and allowed Tron to survive.
A few months later, under Justin Sun’s marketing, the price of Tron soared 200 times in a month, from 1 cent to 2 yuan.
Taking advantage of the good market conditions, Justin Sun secretly exchanged 6 billion Tron coins for Ethereum (ETH), cashing out a value of approximately 12 billion yuan.
Until now, Justin Sun is one of the people who holds the most ETH.
Affected by Justin Sun's selling, Tron plummeted nearly 20% that day and then continued to fall, causing many investors to lose their fortunes.
No other blockchain project would dare to kill the goose that lays the golden eggs in this way.
Justin Sun seems to particularly enjoy the fame and fortune that comes with his success.
He was busy giving interviews, giving speeches, recording shows, and attending dinner parties, and he looked very excited under the spotlight.
But not every time it goes as he imagined.
Sun Yuchen recorded a program with Sogou CEO Wang Xiaochuan in the early days.
Wang Xiaochuan thought it was a shame to appear on TV with a "scammer" and left before the show was finished.
Justin Sun always remembered this incident, and couldn't help but bring it up again when he was having dinner with Buffett a few years later.
But it still can't change everyone's impression of him.
After all, Justin Sun is a well-known sickle and master of harvesting leeks in the blockchain industry.
At the beginning, a large amount of cash was withdrawn, and the users who invested in Tron were devastated.
In 2019, Justin Sun established the Tron Super Community, claiming that users could obtain several times the returns by holding Tron coins.
So users bought Tron coins, then developed their own downlines, asking their downlines to continue buying Tron coins, playing the game of passing the parcel.
Look familiar?
It's a Ponzi scheme.
Justin Sun’s Ponzi scheme lasted for about half a year, but it could no longer continue.
Justin Sun closed the Tron Super Community and banned users from logging in. The more than one billion yuan invested by hundreds of thousands of people can no longer be withdrawn.
After the incident became a big deal, Justin Sun distanced himself from the matter, saying that the Tron Super Community had nothing to do with him.
It was also from this year that Justin Sun fled back to the United States to avoid investigation.
In the blockchain industry, there has always been a saying that "Sun Ge's smile can lead to life or death."
This means that as long as he takes any action, some investors will be in big trouble.
There are always various new technologies emerging in the blockchain industry, and hot spots rotate frequently.
In 2018, when the focus came to the field of distributed storage, Justin Sun issued BTT through acquisition, and it soon plummeted to zero.
In 2019, the ecosystem on the ETH chain ushered in unprecedented development.
DEX (decentralized exchanges) based on the AMM mechanism, such as Uniswap, Sushiswap and other projects are mature, and anyone can quickly interact and exchange assets and pledge for profit through their wallets.
Justin Sun also seized the opportunity to plagiarize the code and then issued his own DEX on the Tron chain. As a result, he again lost countless lives and caused a sharp drop in digital assets in the DEX sector.
Also in 2019, he spent $4.56 million to bid for Buffett's lunch, and then began his famous "Three Plays of Buffett" performance, repeatedly canceling and delaying the meal time with reasons such as kidney stones.
The reason why Justin Sun did this was for repeated marketing, using hot topics such as sky-high-priced dinners and Buffett to manipulate prices and profit from them.
It was not until Buffett could no longer bear it that he finally went through with the dinner in 2020.
At this time, Justin Sun not only recovered the cost of buying the lunch, but also earned several times the profit, making a fortune.
In 2021, after the rise of NFT, Justin Sun launched the APENFT Marketplace, an NFT ecological trading platform based on Tron, attracting "leeks" to enter the market through left-right operations.
But Justin Sun is Justin Sun. Even though he keeps cutting leeks, he still has countless fans.
By 2022, Justin Sun decided to clear himself.
To whitewash oneself, one needs an official identity.
It is impossible in China.
It is actually impossible for the United States to give him such an identity.
Justin Sun turned his attention to a little-known small country.
In June 2022, Justin Sun became Grenada's Permanent Representative to the World Trade Organization and Ambassador Extraordinary and Plenipotentiary.
Grenada is a small island.
In October, seven tokens including TRON, created by Justin Sun, became the legal digital currencies of Dominica.
Dominica is the poorest island country in the Caribbean Sea in Central America.
These are all things that can be solved by spending some money.
With an official identity, Justin Sun has also set his sights on another business: digital currency exchange.
The world’s three largest exchanges were once all from China. Two of them failed to expand overseas in time and fell into decline, and one of them eventually had to be sold by its founder.
This exchange is Huobi (now renamed Huobi).
The person who bought it was Justin Sun.
It wasn’t long before Justin Sun was wielding the scythe and aiming at his own employees.
As soon as Justin Sun took office, he dismissed hundreds of employees, canceled their year-end bonuses and all welfare subsidies, stopped paying five social insurances and one housing fund, and no longer paid wages in legal currency.
The employees had no choice but to launch a rights protection movement.
The so-called "all employees exchange for U" means using digital currency USDT instead of legal currency to pay wages. After employees receive USDT, they need to exchange it into legal currency through over-the-counter transactions.
This process may result in bank accounts being frozen and may even involve high-risk issues such as money laundering.
Of course, the employees were unwilling to take the risk, but in the end they had no choice.
After accepting Huobi, Justin Sun used the exchange to launch multiple virtual coins, such as PI coins, to harvest a large number of retail investors; he used tokens plus P to confuse the fake with the real, and used the fake coins of the exchange to exchange for the real coins in the hands of users; he used the advantage of holding a large amount of HT to control the market through insider trading, causing huge losses to users.
On March 22, the U.S. Securities and Exchange Commission filed a lawsuit against Justin Sun, alleging illegal sales of securities, fraud, and market manipulation, with irrefutable evidence. The FBI and the Department of Justice had already launched an investigation into Justin Sun two years ago. Sun’s response was to ignore and not respond to the lawsuit.
As early as 2017, Justin Sun was listed as a wanted person in China; on the 5th of this month, senior executives of the Huobi Exchange in Sanming were arrested in China on charges of opening a casino.
I hope that this time, Justin Sun can receive legal sanctions.
Justice will eventually be served, and when the dust settles, Sun Yuchen’s related tokens (TRX, HT) and exchanges (P网, Huobi) will be completely reduced to zero.