Tron’s Justin Sun Denies Provoking Ethereum Crash, Here’s Proof

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As a seasoned researcher with over two decades of experience in the financial industry and more than half a decade specializing in digital currencies, I have witnessed numerous market fluctuations, rumors, and accusations. The recent allegations against Justin Sun regarding Ethereum liquidations are not an exception to my radar.

Justin Sun, creator of the Tron blockchain and operator of crypto exchanges like Poloniex and Huobi, recently used his X account (previously known as Twitter) to dispute rumors suggesting his liquidations caused a drop in ETH prices. On-chain data supports his claim, indicating he has not offloaded the substantial Ethereum holdings amassed since February this year.

As a researcher examining the cryptocurrency market, I’ve noticed an astounding plunge in the value of the second-largest digital currency by market cap. This decline has pushed its price below the $2,300 threshold.

Sun says he didn’t sell ETH bag, Here’s proof

Justin Sun, a wealthy figure in the cryptocurrency world, addressed the speculation surrounding potential liquidation of his Ethereum holdings, dismissing it. In a statement, Sun clarified that he and his team typically avoid using highly leveraged trading tactics because they believe these methods do not offer substantial advantages to the crypto industry.

Instead of that action, Sun tends to “back the industry and entrepreneurs,” a role he fulfills through activities like cryptocurrency staking, operating nodes, and immersing himself in projects while offering aid to project teams to ensure liquidity.

Contrary to some speculations, our jobs aren’t being eliminated. We seldom resort to complex trading methods that involve leverage due to our conviction that they don’t contribute much to the industry’s growth. Instead, we focus on tasks that offer more substantial backing to the industry and…

— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 5, 2024

On X @spontonchain’s analytics platform, it was reported that Sun, Tron’s blockchain founder, verified a tweet stating he hasn’t sold any of the 377,590 ETH he acquired since February’s start. Prior to Ethereum’s downfall, his ETH holdings were valued at an impressive $1.15 billion.

Following Ethereum’s significant drop of around 20%, the estimated worth of Sun’s Ethereum investment exceeded a substantial $250,000 USD, as per the information shared by @spotonchain.

Was there a significant decrease in the value of your Ethereum portfolio today, given that its value dropped by approximately 20%? Justin Sun experienced a loss of around $280 million due to this decline. Since February 8, 2024, he has reportedly acquired 377,590 ETH (estimated cost: $1.15 billion) through three wallets. However, the current trading price of Ethereum is significantly lower than his average buying price of $3,051. Despite this, let’s wait and see how things unfold.— Spot On Chain (@spotonchain) August 5, 2024

Over the last 24 hours, Ethereum experienced a steep drop of over 22%, moving from around $2,920 to approximately $2,270. Currently, Ethereum is being traded at about $2,282 per coin, with the downtrend persisting.

Ethereum sees massive withdrawals and liquidations

According to data from the @lookonchain analytics account on X, it appears that some large ETH holders (whales) have been offloading their Ethereum at a rapid pace, liquidating a total of 63,732 ETH, which equates to approximately $150 million. This significant sale was carried out by 25 different addresses.

Among them was one particular whale that was liquidated for 9,834 ETH. That is the equivalent of $23.16 million.

Last week, as per a recent report by CoinShares, there were significant outflows for both Bitcoin and Ethereum. Collectively, institutional investors withdrew approximately $400 million from Bitcoin and about $146.3 million from Ethereum.

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2024-08-05 15:53