Tron Inc., a company previously known for toys and theme park souvenirs, has filed to raise up to $1 billion in securities — including stock and debt — with a singular mission: accumulate TRX, the native token of the Tron blockchain.

While their name may echo the blockchain network, the entities are officially unaffiliated. Yet the connections run deeper than they seem.

A crypto treasury play — but with TRX, not Bitcoin

This is not a simple pivot — it’s a full-blown transformation. Tron Inc. is adopting the crypto treasury model made popular by MicroStrategy’s Michael Saylor.

But instead of Bitcoin, Tron Inc. is going all-in on TRX, a token with lower liquidity and less institutional support.

The company’s SEC filing states that proceeds from the securities sale will be used to purchase TRX and potentially launch new revenue-generating initiatives.

However, with their traditional toy business operating at a loss in 2024, Tron Inc. acknowledges it will depend on these financings just to stay afloat.

Governance and insider ties raise eyebrows

Things get murkier when looking at governance. The chairman of Tron Inc. is Weike Sun, the father of Tron blockchain founder Justin Sun.

Several other directors also have links to the Tron ecosystem, though Justin himself isn’t officially part of the board.

Still, the web of influence is notable. In June, Tron Inc. completed a reverse merger using $100 million in TRX held in a Hong Kong trust connected to one of its directors.

It paints a picture of a tight-knit inner circle managing crypto funds across jurisdictions.

This comes just a year after Justin Sun’s companies were targeted by the SEC for alleged unregistered securities sales and market manipulation involving TRX.

While Tron Inc. is not named in those actions, the familial and ecosystem overlaps may raise compliance and conflict-of-interest concerns.

Expert reaction: risky liquidity engineering

Vincent Liu, CIO at Kronos Research, described the move as “aggressive liquidity engineering,” likening Tron Inc. to a publicly traded TRX accumulation machine.

But he also warned of the risks:

“TRX isn’t Bitcoin. It’s far less liquid and carries real volatility risk. A sudden drop in demand or token value could derail their entire strategy.”

Final thoughts: high stakes, high risk

Tron Inc.’s plan is undeniably bold. If successful, it could raise TRX’s market profile, attract investor attention, and grant early insiders significant leverage.

But the cocktail of illiquid assets, regulatory shadows, and family influence makes for a volatile mix.

For now, Tron Inc. is diving headfirst into crypto waters — not with Bitcoin, but with a controversial bet on TRX.

Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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