Recently, Justin Sun has attracted much media attention for successfully selling 5.374 million EIGEN airdrops. The transaction was conducted at a price of $4.03 per coin, which made him easily earn more than $20 million. Although this income may not be a big deal for Justin Sun, his operation strategy is thought-provoking. Why did he first recharge the airdrop tokens to HTX (formerly known as Huobi) and then transfer them to Binance for sale and cash out?

First, let's review his operation process:

Justin Sun received about 5.374 million EIGEN airdrops through 6 addresses.

After the EIGEN tokens were unblocked, he quickly transferred them to HTX.

Later, he transferred the tokens to Binance and sold them all at an average price of $4.03, in exchange for about 21.66 million USDT.

So, why did he choose such an operation path?

Behind this is actually Justin Sun's careful consideration and strategic layout:

Optimize transaction prices: Liquidity and prices of different exchanges often differ. As world-renowned trading platforms, HTX and Binance have high trading depth and liquidity. Sun Yuchen may first use the high liquidity of HTX to quickly transfer the tokens, and then find a better price on Binance to sell them, so as to obtain more profits.

Diversify risks: Spreading assets across multiple exchanges can effectively reduce risks. In the context of increasingly stringent regulation in the current cryptocurrency circle, a single exchange may face technical failures or regulatory risks. By spreading assets across HTX and Binance, Sun Yuchen can reduce the impact of these potential risks on assets.

Take advantage of arbitrage opportunities: The price difference between HTX and Binance provides the possibility of arbitrage. If Sun Yuchen transfers EIGEN at a higher price when HTX is transferred out, and can get a better exchange rate when selling on Binance, then he can achieve risk-free arbitrage in this way and further increase his income.

In summary, Sun Yuchen chose to recharge the airdrop tokens to HTX first and then transfer them to Binance for sale and cash out based on the consideration of optimizing transaction prices, diversifying risks and taking advantage of arbitrage opportunities. This strategic layout reflects his keen insight into the market and superb trading skills.