Justin Sun's Sun Wukong DEX: A Challenge to China's Crypto Ban?

Key Takeaways

• Justin Sun unveiled SunPerp (Sun Wukong), a new DEX aimed at Chinese users.
• This launch appears to directly challenge China's existing ban on cryptocurrency trading and mining.
• Despite the ban, crypto activity persists in China, with Sun-affiliated platforms playing a significant role.

Sun's History with the Chinese Market

Justin Sun has deep ties to the Chinese crypto market. Even before the 2021 ban, he was a prominent figure through his association with HTX (formerly Huobi). HTX once held a substantial share of trading volume, a significant portion of which was attributed to Chinese users. Though HTX and Poloniex officially exited mainland China following the ban, their connection to the Chinese market remains.

Tron's Continued Presence in China

Despite the ban, Tron maintains a strong presence in China. In 2023, reports indicated that a notable percentage of Tron nodes were located within the country. Furthermore, USDT, primarily transacted on the Tron network, is suspected of being heavily used by Chinese individuals seeking to access US dollar assets. Arthur Hayes famously called it the “go-to dollar bank account for crypto-minded Chinese folks.”

SunPerp/Sun Wukong: A Decentralized Gamble?

The rise of perpetual futures DEXs has been a significant trend in DeFi. Sun's new platform, SunPerp, branded as Sun Wukong in Chinese, explicitly targets a Chinese audience. The name itself, referencing the Monkey King, a famous figure in Chinese mythology, is a clear appeal. The platform claims to represent openness, inclusivity, and fearlessness in the face of censorship.

Decentralized platforms, by their nature, can circumvent restrictions as long as no centralized administrator can be targeted. A VPN can provide access to the platform for those seeking to trade despite local laws.