- Justin Sun, founder of the Tron blockchain and owner of Poloniex and Huobi exchanges, addresses rumors about his involvement in the recent Ethereum price collapse.
- On-chain data reveals that Sun has not sold his substantial Ethereum holdings, countering the speculations circulating in the market.
- “We rarely engage in leveraged trading strategies because we believe such trades do not significantly benefit the industry,” Sun asserts.
Counteracting Ethereum Price Rumors and Market Dynamics Explained – Discover the Truth!
Justin Sun Denies Liquidating Ethereum Holdings
Justin Sun has publicly refuted rumors suggesting that his Ethereum holdings were liquidated, prompting a price drop. Sun emphasized that both he and his team prefer to avoid leveraged trading strategies as they don’t see significant industry benefits from such actions. Instead, they focus on supporting the blockchain ecosystem through methods like staking, running nodes, and providing liquidity to various projects.
On-Chain Data Supports Sun’s Claims
Analytics provided by the @spontonchain account on X (formerly known as Twitter) corroborate Justin Sun’s statement, showing he hasn’t sold any of his 377,590 ETH holdings accumulated since February 2024. Despite Ethereum’s recent downtrend, this data reinforces Sun’s position. Before the market downturn, his Ethereum was valued at approximately $1.15 billion.
Impact on Sun’s Ethereum Portfolio
As Ethereum faced a rough 20% price drop, Sun’s holdings experienced a significant devaluation, losing over a quarter of a billion dollars in value. Spot On Chain’s reports indicate that Sun’s average buy price was around $3,051 per ETH, considerably higher than the current trading price. Despite this, Sun has held onto his assets, demonstrating his long-term confidence in Ethereum.
Market-Wide Implications and Enormous Liquidations
Amid Ethereum’s downturn, large-scale liquidations have been observed across the market. According to data from @lookonchain, substantial sales by 25 significant addresses resulted in the liquidation of 63,732 ETH, equivalent to $150 million. This activity has undoubtedly exerted downward pressure on Ethereum’s price.
Institutional Withdrawals Add to Market Strain
A recent CoinShares report highlights that both Bitcoin and Ethereum experienced notable outflows last week. Institutional investors withdrew around $400 million from Bitcoin and $146.3 million from Ethereum. These withdrawals further illustrate the broader market challenges facing these leading cryptocurrencies.
Conclusion
In the face of mounting speculation, Justin Sun has clarified his trading activities, reaffirming his commitment to supporting the crypto industry’s development rather than seeking short-term market gains. The current market turbulence, characterized by significant withdrawals and liquidations, underscores the volatile nature of cryptocurrencies. Nonetheless, Sun’s stance and actions highlight a more sustained vision for the blockchain community.
