Justin Sun Claims JST Will Become a ‘Hundredfold Token,’ Sparking Discussions in the Tron Ecosystem

2025-04-28, 03:12

On April 27, 2025, Tron founder Justin Sun made a blockbuster statement on the social media platform X, stating that the JST (JUST) token has experienced a fundamental reversal and predicted that it will become the “next hundredfold token.” This statement quickly ignited market enthusiasm, and the price of JST soared by 34% within 24 hours, reaching $0.04310. Justin Sun’s optimistic prediction is based on JustLend and USDD The strong growth of Gate, as well as the promise of future repurchase and destruction of JST. However, behind the market hype, potential risks and challenges are also worthy of attention.

The Rise of JST: JustLend and USDD Dual-wheel Drive

Justin Sun pointed out in the statement that the decentralized lending platform JustLend incubated by JST has grown into Tron The cornerstone of the eco, ranks as one of the largest lending platforms with an annual net profit of tens of millions of dollars. JustLend is similar to AAVE on Ethereum, allowing users to borrow assets through liquidity pools. With Tron network’s high throughput and low transaction fees, it has attracted a large number of users. According to previous data, JustLend’s Total Value Locked (TVL) has reached $1.9 billion in 2022, while Tron’s DeFi eco assets will surpass $8.1 billion in 2023, second only to Ethereum.

Meanwhile, the algorithmic stablecoin USDD incubated by JST has also achieved ‘explosive growth.’ In January 2025, Justin Sun launched USDD 2.0, offering up to 20% annual percentage yield (APY), fully subsidized by the Tron DAO reserve. This high-yield strategy significantly promoted the adoption of USDD, making it a core asset in the Tron eco. Justin Sun positions JST as a combination of AAVE and MKR in the Tron eco, emphasizing its dual role in lending and stablecoin governance.

Confidence in Hundredfold Prediction: Driven by Profit and Repurchase Destruction

Justin Sun predicts that the annual net profit of the JST eco has reached tens of millions of dollars and will exceed 100 million dollars in 2026. He believes that the current valuation of JST is far below its fundamentals and has huge growth potential. To further enhance the token value, Justin Sun has promised to use all profits to repurchase and destroy JST tokens in order to reduce the circulating supply. This mechanism is similar to Binance’s BNB Destruction strategy, theoretically can increase prices through supply and demand adjustments.

The market has reacted strongly to Justin Sun’s statement. Data from platform X shows that the trading volume of JST surged after the statement was released, with some users optimistic about its buyback and burn plan, believing it will bring rewards to long-term holders. However, some users have warned of short-term overbought risks and advised investors to buy on dips to avoid pullbacks.

Potential Risks: Hidden Concerns of Stablecoins and Transparency

Despite Justin Sun’s optimistic predictions, JST and the Tron eco still face multiple challenges. Firstly, the stable algorithm mechanism of USDD and Terra Similar to UST, UST experienced a crash in 2022 that led to a loss of $40 billion. USDD itself also decoupled to $0.97 in December 2022, raising questions about its reserve transparency. In addition, the high yields of JustLend and USDD (20%-30% APY) rely on subsidies from Tron DAO, similar to the Terra Anchor protocol, and its long-term sustainability has yet to be validated.

Transparency issues have also received attention. In 2023, an analysis pointed out that stUSDT (USDT collateral) on JustLend involves opaque asset operations, with a large amount of USDT in reserve being transferred to platforms controlled by Justin Sun. In addition, Justin Sun and his projects (such as Tron and BTT) have been sued by the U.S. Securities and Exchange Commission (SEC) for alleged securities fraud and market manipulation. These legal risks may pose a threat to the reputation and eco development of JST.

Market Outlook

Justin Sun’s statement undoubtedly injected a shot in the arm for JST, depicting a bright prospect for investors with the rapid growth of the Tron eco and the buyback and burn plan. However, the risks of algorithmic stablecoins, the sustainability of high returns, and the challenges of transparency and regulation serve as a reminder for the market to remain cautious. For investors, closely monitoring the on-chain data of JustLend and USDD, the reserve report of Tron DAO, and the implementation of the buyback plan will be crucial in uating the potential of JST.

Whether JST can become a ‘hundredfold token’ still needs time and market validation. In the intertwining of ambition and challenges in the Tron eco, Justin Sun’s bold words have added a touch of brightness to the cryptocurrency market, bringing opportunities and reflections to investors.

Note: This article is based on Justin Sun’s public statement on April 27, 2025, and related data. Market dynamics may change at any time, so investment should be cautious.

Author: Rooick Z., Gate.io Researcher

This article represents only the author's point of view and does not constitute any trading advice. Investment is risky, and decisions need to be cautious.

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