As a researcher with experience in the crypto industry, I find Ki Young Ju’s findings on Justin Sun’s Bitcoin trades intriguing but also concerning. The allegations of large Bitcoin long trades backed by potentially questionable collateral are not new to the crypto world, but the scale of Sun’s reported positions is significant.
As an analyst, I’ve long recognized Justin Sun as a significant player in the Bitcoin (BTC) and altcoin market. However, recent transactions disclosed by CryptoQuant Founder Ki Young Ju could potentially tarnish Sun’s hard-earned reputation.
The Justin Sun Bitcoin Long Trades
As a thorough analyst, I’ve noticed some questionable patterns in previous reports regarding HTX’s financial reserves. In response to these concerns, I decided to delve deeper into the situation.
Returning with his findings regarding X, he asserts that Justin Sun is the identified whale connected to the HTX sanctuary. He added that Sun executed a lengthy Bitcoin trade when its value reached $67,000. Based on his investigation, Sun’s overall holdings equate to approximately $420 million.
This HTX whale was Justin Sun.
“He initiated a large Bitcoin purchase for over $67,000, investing at least $420 million. Meanwhile, their US Dollar Tether (USDT) reserve is approximately $24 million. The source of the substantial collateral required for these positions remains unclear.”
I studied a project where an individual employed approximately 460 million dollars’ worth of stablecoins, specifically USDT. This project boasts a remarkable annual percentage yield (APY) of 46%. Notably, around 89% of the total supply is represented by HTX tokens.
— Ki Young Ju (@ki_young_ju) July 11, 2024
Although Sun’s involvement in comparable transactions isn’t unusual, the issue lies in the fact that HTX has a relatively small liquidity of $24 million. This questionable pattern doesn’t stop there; Sun is suspected of supporting Bitcoin trades with an enormous $460 million stake of stUSDT.
Risky wagers using borrowed collateral in the crypto market have raised concerns with some past patterns being questionable. For instance, Michael Egorov, a co-founder of Curve Finance, experienced significant CRV token liquidations just a few weeks ago. With Bitcoin’s current price at $57,864, there is an elevated risk for unexpected liquidation events.
As a researcher, I’ve come across some intriguing information regarding the stablecoin called stUSDT. Contrary to popular belief, this stablecoin is confirmed to be associated with Justin Sun. Now, Young Ju didn’t explicitly accuse market manipulation practices, but he did raise an important question: where exactly is the collateral backing the Bitcoin bets sourced from?
Another FUD or Legit Concern?
In the business world, including for Justin Sun, taking on risky wagers is a frequent occurrence. For instance, it was announced previously that the Tron Founder invested $5 million in Ethereum prior to the potential approval of an Ethereum-based Exchange Traded Fund (ETF).
As a well-known figure in the crypto industry, every trade made by Ki Young Ju is closely examined. ZachXBT, an influential on-chain sleuth, has been brought in to help investigate these trades. In contrast, Justin Sun has chosen not to comment publicly about his recent Bitcoin transactions at this time.
Prior to any damaging allegations being brought forth, some may recall his recent announcement of a gas-free, stablecoin alternative, which has only been in the spotlight for a week.
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2024-07-11 21:49