As Credit Suisse is in a storm of trouble Justin Sun appears as a knight in shining armor, or is he?
Credit Suisse is in huge trouble
As the big Swiss bank is having some huge financial trouble, in 2022 they reported ~$8 billion in losses. The current situation with high inflation appears to have caused them more trouble them many other banks. At least for now. If they were to fail surely the crash would be felt among almost all other banks, and might even be the starting point for a global recession.
The other Swiss bank UBS has been more or less strongarmed by the Swiss government to make a bid for Credit Suisse. And a bit of $1 billion has been made. But from a tangentially adjacent field in the far east comes a white night in shining armor. Willing to save the day, enter Justin Sun. Willing to splurge a whopping $1.5 billion to buy the failing bank.
Sun is talking about bringing the bank into Web3.0, whatever that means. Last time I checked the whole Web3 thing is to put the power back into the hands of the individuals, and not the corporations. So I don't really see bringing one of the biggest banks there as any type of step in the right direction. It would most likely be the final nail in the Credit Suisse coffin.
Most likely the people in charge just googled "Justin Sun" and were immediately turned off by what they saw, and anyone within their right mind would be. Meaning they just when on with their business and ignore his offer.
The Swiss government did however announce late on Sunday that a deal had been made and UBS had indeed, more or less against their will, bought Credit Suisse. It will be interesting to see if they will be able to righten the ship, as it is unknown just how bad the situation in Credit Suisse is. And given the short amount of time spent on making the deal. Propper due diligence could not have been done by UBS. The public opinion where at least fairly clear as training started today both stocks took a nose dive. While UBSs stock has rebounded a little it is still down.
Personally, I think we should keep Banks, big companies, and Justin Sun out of both Web3 and crypto to as large an extent as humanly possible. But that's just my opinion. Please share your on this whole thing in the comment section below. If you would like to support me and the content I make, please consider following me, reading my other posts, or why not do both instead.
See you on the interwebs!
Picture provided by: fair use
