Sun has denied these allegations and intends to establish a $1 billion fund to combat false information. In the interim, the market collapse resulted in losses exceeding $1 billion, affecting more than 300,000 traders.
The hefty market volatility of today has impacted a multitude of crypto merchants, including Justin Sun, the originator of the Tron blockchain. Sun’s portfolio suffered a $280 million loss as a result of Ethereum’s 20% price decline, according to blockchain analytical firm SpotOnChain.
According to an image from the crypto analytical firm, the entrepreneur acquired 377,590 ETH for approximately $1.15 billion over the past seven months through three wallets. His average purchase cost was $3,051, which is significantly higher than the current price of ETH, which is $2,246.17, according to the data.
Speculations that Sun and his team suffered significant liquidations that contributed to the current market collapse were fueled by this significant loss and previous allegations. Nevertheless, the founder of Tron has denied the validity of such assertions.
Sun contends that his team refrains from engaging in leverage trading, as they prioritize trading strategies that are advantageous to the entire crypto industry. He stated:
“We are not liquidating our positions, as the allegations suggest. We rarely participate in leveraged trading strategies because we are of the opinion that they do not provide a substantial benefit to the industry.”
The TRON Network founder emphasized that his team was more engaged in staking, blockchain node operation, crypto project development, and liquidity provision for crypto protocols. In order to substantiate his assertion, he stated that his team will establish a $1 billion fund to “provide liquidity, invest more, and combat FUD.”
Although Sun denies being liquidated, the recent collapse that resulted in Bitcoin’s first decline below $50,000 in nearly six months has left few crypto traders with the same level of confidence. Bitcoin experienced a 16% decline, while Ethereum experienced a 20% decline. Additionally, numerous digital assets experienced double-digit losses. Other top ten digital assets, such as the BNB token, which is backed by Binance, experienced a 20% decline, while SOL experienced a 21% decline.
The market performance of this period led to the liquidation of over 300,000 crypto merchants, who collectively suffered losses exceeding $1 billion, according to data from Coinglass. It is important to note that a long trader on the Huobi exchange recorded the single greatest loss, which was $27 million, betting on the upward movement of the Bitcoin price.
At the same time, analysts have attributed the abrupt decline in the crypto market to macroeconomic conditions and the crypto-specific actions of companies such as Jump Crypto, which divested a significant portion of its ETH holdings. Conversely Matt Hougan, the Chief Information Officer of Bitwise, maintains an optimistic outlook regarding the market. Hougan suggested that the current price action “contributes to the long-term narrative of Bitcoin.”
Also Read: Japanese Yen Carry Trade Breaks down and threatens Global Stock Market Chaos Peter Schiff
