Justin Sun’s new stablecoin sells out in under five minutes

If you wanted in on Tron’s latest stablecoin, you missed it.

Tron CEO Justin Sun announced earlier today on Twitter that his new stablecoin JUST (or $USDJ) sold out in under five minutes.

The stablecoin, which is pegged to the US dollar, was the first token launched on the crypto exchange Poloneix’s new Intiatial Exchange Offering (IEO) platform LaunchBase. Poloniex, which is partially owned by Sun, said last month that the stablecoin would be generated from Tron tokens (TRX) through a Collateralized Debt Position on the stablecoin’s JUST platform.

Just prior to the launch of the new Poloniex token sale platform last month, Tron was hit with a class-action lawsuit alleging violations of US securities laws in connection with the sale of Tron (TRX) tokens. The complaint was part of a set of “Red Wedding” lawsuits which were filed against Binance, BitMex, and other major crypto companies—all which alleged illegal sales of tokens associated with ICOs.

Over the last few years, token sales, ICOs, and IEOs have come under heavy scrutiny from regulatory authorities such as the US Securities and Exchange Commission. What’s more, just as stablecoin trading volumes are exploding across the crypto industry, and regulators around the world are beginning to take notice of the potential “risk to global financial stability” from the growth of stablecoins. 

Facebook’s Libra is in large part responsible for thrusting stablecoins into the spotlight. But despite recently acquiescing to regulators’ demands, some US authorities still believe that Libra qualifies as a security and should be regulated as such.

Meanwhile, stablecoins have boomed past a $10 billion market cap in recent days as the world rushes to grab dollar liquidity amid the economic crisis induced by the coronavirus pandemic. Tether currently dominates the stablecoin leaderboard with a market cap of over $7.5 billion.

But with Sun’s new offering, the stablecoin wars may be just heating up.