What Justin Sun’s US$6.2 million banana says about crypto

A very expensive banana has put Justin Sun, a controversial figure in the cryptocurrency community among the post-90s generation, under the spotlight again.

This banana became an artwork entitled “Comedian” after it was duct-taped to a wall by Maurizio Cattelan, an Italian artist known for his humorous and provocative works.

On 20 November, Sun, who was in Hong Kong, participated remotely in a five-minute rapid bidding process at Sotheby’s in New York, and outbid six other rivals with an offer of US$6.2 million to acquire the artwork.

According to The New York Times, “Comedian” is a conceptual artwork created by Cattelan for Art Basel Miami Beach 2019. Conceived as a satirical jab at market speculation, the artwork was originally priced between US$120,000 and US$150,000 and has three editions. 

Conceptual artworks are essentially ideas, and what artists typically sell is a certificate of authenticity and a set of instructions, allowing the collector to understand how to maintain or recreate the piece they have purchased.

Like other collectors of “Comedian”, Sun will also receive a new roll of duct tape and a 14-page instruction manual, which explains the installation and display methods for the banana, including a recommendation to replace the banana every seven to ten days and to position it approximately 1.75 metres above the ground.

Even though auction houses do not typically require bidders to disclose their identities and many buyers often participate anonymously through agents, Sun chose to put in a high-profile bid for “Comedian”, saying that he intended to pay with cryptocurrency.

While Sun may have spent millions of dollars on what is a soon-to-be rotten banana, his actions have certainly captured public attention. Sun said in a statement that this is not just an artwork but represents a cultural phenomenon bridging the worlds of art, memes, and the cryptocurrency community.

Most Chinese netizens are unable to comprehend Sun’s actions, with some criticising it as “too absurd to explain” and others alleging that he was sensationalising the move and obviously laundering money.

In fact, this is not the first time that Sun has splashed out on an auction. 

Five years ago, he bid US$4.57 million to win a charity lunch with American investment guru Warren Buffett, only to later cancel the meeting, sparking public controversy. He later issued a public apology on social media and admitted to over-marketing and over-hyping the lunch with Buffett, pledging to post less frequently on social media. 

But the more intriguing question is just how deep Sun’s pockets are, allowing him to spend so much money on a banana.

Looking back on how Sun made his fortune, the 34-year-old was born in Xining in Qinghai province, and had initially emerged in the Chinese business world with numerous accolades — a strong educational background, overseas study experience, and entrepreneurship.

Not only does he hold a bachelor’s degree from Peking University and a master’s degree from the University of Pennsylvania, Sun is also the founder of Tron, one of the first companies in China to go into blockchain research and development.

In 2017, Justin Sun founded Tron, quickly gaining significant attention in the cryptocurrency community. However, he also faced criticism, including accusations of “exploiting the gullible” and “being attention-seeking”, which earned him the nickname “Sun the Exploiter.”

After China banned all forms of virtual currency financing that year, Justin Sun shifted his focus overseas. He spent several years in countries such as the US, Singapore, and the UAE before eventually settling in Grenada, a Caribbean island nation. Sun even served as Grenada’s ambassador to the World Trade Organization for a period and announced his departure from Tron.

In October 2022, Sun took a position at the cryptocurrency exchange Huobi (HTX) as a member of the Global Advisory Board. The following year, he announced the relocation of the company’s Asia headquarters from Singapore to Hong Kong.

In February 2024, Sun posted a screenshot of his HTX account on social media platform X, showing that he held approximately 28,613 Bitcoin. With the surge in Bitcoin prices, Sun’s net worth increased significantly from US$1.6 billion to US$2.8 billion over the past nine months.

However, despite his flamboyant opulence, Sun is not the richest person in the cryptocurrency world.

When it comes to the wealthiest individual in the cryptocurrency world, none surpass Binance founder Changpeng Zhao, who was released from prison in the US in late September.

In November 2023, Zhao admitted to violating US anti-money laundering laws and reached a US$4.3 billion settlement with the Department of Justice. He resigned as CEO of Binance and paid a US$50 million personal fine. In 2024, Zhao was sentenced to four months in prison for money laundering.

According to an estimation by Forbes, Zhao’s net worth is around US$63.3 billion, making him the 24th richest person globally, ahead of Nongfu Spring founder and chairman Zhong Shanshan at number 28, with a net worth of US$52.5 billion.

With support from US President-elect Donald Trump, cryptocurrencies are experiencing its moment of glory this year. Bitcoin, the leading cryptocurrency, has repeatedly reached new highs and is currently approaching US$100,000. During his campaign, Trump claimed that if he returned to the White House, he would designate Bitcoin as a US strategic reserve asset, and reduce regulations on the cryptocurrency industry.

According to cryptocurrency data site CoinGecko, as of 25 November, Bitcoin’s price has surged nearly 122% this year to US$98,000, reigning supreme over more than 15,000 cryptocurrencies with a market cap of nearly US$2 trillion, and accounting for more than half of the cryptocurrency market. Meanwhile, Tron also saw significant gains, rising 95% thus far this year to US$0.21 with a market cap of US$18.1 billion, placing it among the top 15 cryptocurrencies.

Cryptocurrencies, unlike fiat currencies such as the US dollar, Singapore dollar or Chinese renminbi, have always been controversial in the investment world. Despite this, the wealth creation myths in crypto still attract many investors eager to take risks, fantasising about becoming rich overnight through cryptocurrency trading.

Due to concerns over risks such as capital outflows and money laundering, the Chinese government issued a comprehensive ban on cryptocurrency trading within its borders in 2021. However, Chinese investors still find ways to invest, engaging in over-the-counter or peer-to-peer trading while operating in a grey area.

A Bloomberg report in September highlighted that Chinese over-the-counter cryptocurrency brokers experienced unprecedented capital inflows. According to US-based blockchain analytics platform Chainalysis, in the three quarters leading up to the end of June 2024, each quarter saw inflows exceeding US$20 billion — a record streak since 2021 — totalling $75.4 billion over nine months.

One can expect that unless the Chinese government intensifies its crackdown, interest in cryptocurrencies from Chinese investors would likely continue growing.

For investors quietly buying in, the amount of money Sun spent on a banana — whether seen as hype or money laundering — is at best a talking point in the crypto world. Their primary concern is whether this frenzied bull market will continue.

This article was first published in Lianhe Zaobao as “天价香蕉与疯狂币圈”.

Related: Rising cryptocurrency appeal in China despite ban and escalating restrictions | Trump’s pro-crypto stance could be another thorn in US-China relations