A few days ago, a post-90s young man in Hong Kong personally ate a banana he bought at Sotheby's auction for $6.2 million at a press conference. He claimed this act was part of an 'art experience.' Personally, I think this art has nothing to do with it; the focus is that he bought global attention for $6.2 million. And the person who successfully attracted the world's attention is named--Sun Yuchen.
Today, let's talk about Sun Yuchen, the 'Jia Yueting of the coin circle,' and his path to success.
1. Brother Sun, Sun 'Cut'
Who is he? He claims to be 'Jack Ma's youngest disciple' and the only post-90s student in the first session of 'Lake X University'. He made his first pot of gold through Bitcoin, and at one point, his wealth reached 15.8 billion. He once paid an exorbitant price to win a lunch with Buffett but ultimately stood up the old man. Picking up a pen, he got into Peking University with the bonus points from winning first prize in the 'New Concept Composition Contest'; putting down the pen, he transformed into a 'scalper', harvesting countless retail investors trading cryptocurrencies.
Sun Yuchen is undoubtedly a smart person. When he graduated from Peking University with a degree in history, he ranked first in his department. He then pursued further studies at the Ivy League University of Pennsylvania in the United States. There, he bet his entire fortune, making his first ten million through Bitcoin. In 2017, he founded TRON. The technical details are not important; in short, it is also a decentralized digital currency based on blockchain. On September 2 of the same year, he issued and raised 600 million yuan domestically. However, the day after the fundraising was completed, seven ministries released an announcement (on preventing the risks of token issuance financing), requiring the cessation of virtual currency issuance and a clearing out.
When the news of the policy was announced, Sun Yuchen was in South Korea, and he firmly stated in a live broadcast, 'No coin refunds.' According to media reports, at that time, the office of TRON was empty. A week later, Sun Yuchen flew from Seoul, South Korea, to San Francisco. Since then, he has been labeled as the 'Jia Yueting of the coin circle,' and 'Brother Sun' has gradually been jokingly called 'Sun Cut.'
In October of the same year, TRON was launched on overseas exchanges at a price of one cent per coin. During those years, Bitcoin was very popular, and anything related to the concept of blockchain could attract frenzied investment. The price of TRON soared from one cent to two dollars in just two months, a 200-fold increase. Those who bought in early seemed to have made a fortune, right? But the truth is, in this game, there is only one person who consistently profits, and that is the big player.
It has been found that more than 50% of TRON is concentrated in one account, with retail investors holding less than 9%. This means that the price of TRON is completely controlled by a few accounts. When retail investors rush in, the behind-the-scenes operator releases 200 million TRON to the exchange daily, cashing out 12 billion yuan within half a month. It is a zero-sum game controlled by the big player, and the biggest player in this game is Sun Yuchen. He remotely directed the TRON team in Beijing to complete 'insider trading', profiting handsomely by buying TRON, releasing positive news to stimulate price increases, and then selling TRON in a cyclical manner.
Every move Sun Yuchen makes appears precise and heavily speculative. In 2022, he appeared as a citizen of the Caribbean island nation of Grenada and took up the position of ambassador to the WTO. Not long ago, he was appointed as the acting prime minister by the 'president' of the unrecognized micro-nation Liberland, Vít Jedlička. Although Liberland is only 7 square kilometers and initially had only 7 citizens, Sun Yuchen's 'entry' still caused quite a stir in the outside world. Additionally, after Trump was re-elected, he invested $30 million in a decentralized finance project led by Trump, becoming the largest investor in that project. From these arrangements, it is not difficult to see how modern big players carefully design and craft their 'public persona.' And why does he go to such lengths? Of course, it is to get his hands on the money in the 'leeks' pockets! As the saying goes, 'A smile from Sun Cut, life and death are unpredictable.'
2. Illusory Value and Dark Transactions
When the big players want to harvest retail investors, you are bound to lose. Essentially, whether it is Bitcoin or other virtual currencies, they are all based on algorithms, and in the end, they are just a castle in the air. Therefore, when asked about his views on Bitcoin, Buffett sharply stated, 'This stuff is worthless.' And something that is worthless may zero out at any time.
In fact, Bitcoin has already played out similar scenarios. In 2009, the price of Bitcoin was only $0.0016, and within two years it skyrocketed to $1,700, attracting a large number of investors. However, just six months later, its price plummeted to $0.01, leaving countless people bankrupt. Such severe volatility is almost impossible in valuable assets like gold and silver. Ultimately, something that is void will return to void.
So why can Bitcoin still be worth so much money? The answer lies in its difficulty to trace and verify. You may have heard that some hackers demand Bitcoin instead of cash when extorting companies. This indicates that Bitcoin provides a means of payment for those who do not wish to be regulated. So, what kind of business most desires 'no regulation'? Naturally, it is in the realms of sex, gambling, drugs, and transnational crime.
3. Conclusion
Sun Yuchen's success may be replicable, but the person replicating him will definitely not be you.
Finally, my advice is: if you don't understand, don't participate. Remember, the little name for money is 'greed.'
