Sun argued that security should not rely on third-party smart contracts but should be embedded directly into the blockchain, making Tron a safer choice for large USDT holders.
By Bena Ilyas
Edited by Marco T. Lanz
Updated
3 mins read
Justin Sun, the founder of Tron, has urged large USDT holders to shift their assets to the Tron blockchain, citing enhanced security and transparency advantages over Ethereum. His recommendation aligns with the network’s growing role in the stablecoin market, where it has issued 62 billion USDT.
Cold Storage Recommendations for Large USDT Holdings
— H.E. Justin Sun 🍌 (@justinsuntron) February 24, 2025
We have discussed storage solutions for large USDT holdings on our platform, and I recommend storing them on the Tron blockchain using a cold multi-signature (multi-sig) approach.
Reasons for this recommendation:
First, USDT…
He stressed the importance of cold storage solutions and advocated for a multi-signature approach on Tron. Unlike Ethereum, where multi-sig security relies on smart contracts, Tron integrates it directly into the blockchain. That structure removes additional risks linked to vulnerabilities in smart contract-based security, which have previously led to exploits in Ethereum-based solutions like Gnosis Safe.
Sun pointed to ongoing discussions about secure storage for large USDT holdings. He endorsed a cold multi-signature setup on Tron as a safer option than Ethereum’s dependence on third-party smart contracts.
Sun criticized Ethereum’s multi-sig mechanism for exposing users to blind signing risks, where approvals may occur without full awareness of potential threats. He highlighted Ethereum’s reliance on smart contracts to manage multi-sig wallets, which create vulnerabilities that are exploitable by attackers. Tron eliminates uncertainty by ensuring complete transparency in every multi-sig transaction.
Ledger devices provide clear details when processing USDT transactions on Tron, displaying the token name, amount, sender, and recipient. Verifying transactions becomes easier, minimizing fraud and unauthorized transfers. Any attempt to modify multi-sig permissions triggers an “unknown type” transaction alert, helping users differentiate between genuine transfers and wallet configuration changes.
Sun’s argument rests on the premise that security should not depend on third-party smart contracts but should instead be embedded into the blockchain itself. He believes that Tron’s approach aligns better with this philosophy, making it the preferred choice for large USDT holders.
Beyond the blockchain’s security structure, Sun also highlighted cold storage as a crucial factor for protecting large USDT $1.00 24h volatility: 0.0% Market cap: $144.15 B Vol. 24h: $29.78 B holdings. Holders significantly reduce the risk of cyberattacks and unauthorized access by keeping assets in cold wallets. Tron’s multi-sig feature integrates seamlessly with cold storage solutions, further strengthening security measures.
Platforms like TotalSig offer user-friendly solutions for those looking to implement Tron’s multi-sig functionality. TotalSig supports various assets, including TRC10 and TRC20 tokens, TRX $0.23 24h volatility: 0.8% Market cap: $21.92 B Vol. 24h: $581.06 M , and NFTs, making it a versatile option for users managing significant holdings. TokenPocket has also introduced a TRON multi-sig wallet feature, simplifying the process of creating and managing multi-sig wallets on the network.
These platforms provide a straightforward setup process, enabling users to either create or import Tron-based multi-sig wallets without requiring deep technical knowledge. The increased adoption of these services suggests a rising awareness of multi-sig security benefits among institutional and high-net-worth investors.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
