Key Insights
- A $100 million PIPE deal in TRX tokens has enabled Weike Sun, father of Justin Sun, to gain control of the board at SRM Entertainment, which is set to rebrand as Tron Inc..
- The arrangement does not include any concrete investment or governance rights from Tron DAO in the SRM transaction.
- This transaction, facilitated by Dominari Securities, has ties to the Trump family.
Details regarding the investment were shared in a recent SEC filing highlighting the collaboration between Tron DAO, Justin Sun, and SRM Entertainment. This transaction grants Weike Sun board authority along with key roles for Tron-aligned advisors in governance activities.
Despite strong connections, it was emphasized that Tron DAO lacks direct influence or formal involvement in the deal, as clarified by Liu: “Tron DAO is not really any part of the deal for SRM. It’s more of the senior Sun’s transaction.”
Furthermore, the filing also disclosed that Weike Sun has stepped into the role of chairman, while Zhihong Liu and Zi Yang assumed critical positions on the audit, compensation, and nomination committees.
In light of the deal, SRM’s quoted stock saw a decline of 15%, settling at $7.73 during the closure of the market in New York, while TRX experienced a drop of 2.5%, hovering around the $0.27 mark.
