Amid the cryptocurrency market downturn, there were rumors that Tron founder Justin Sun’s positions had been liquidated. Sun denied the rumors and criticized the community’s FUD (fear, uncertainty and doubt) and promised to set up a fund to help the industry.
Justin Sun denies liquidation rumors
The cryptocurrency market saw a sharp correction over the weekend, with the market cap falling below the $2 trillion mark. Hundreds of thousands of positions were liquidated as a result, with the amount of liquidations surging to over $1 billion.
As reports of massive liquidations emerged, the community began to speculate on which entities faced liquidation of $372 million in Ethereum (ETH). One report, “Justin Sun was finally liquidated,” caught the attention of investors.
The rumors intensified when Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, shared on X that “some big guy got ripped off and is selling all crypto.” According to Hayes, the information came from his “TradFi birdie,” but no names were revealed.
Some speculated that Hayes was referring to Tron’s founder and his team, which seemed to fuel FUD. However, Justin Sun clarified that these rumors were false and slammed leveraged trading strategies. He said that they “rarely participate” in these strategies because they do not believe they are beneficial to the industry.
Furthermore, he stressed that he prefers “activities that provide greater support to the industry and entrepreneurs, such as staking, running nodes, working on projects, and helping project teams provide liquidity.”
After clarifying the liquidation rumors, blockchain analysis firm Spot on Chain revealed that Sun’s portfolio took a hit after the cryptocurrency market downturn. According to the report, the value of Sun’s ETH holdings fell sharply after the second-largest cryptocurrency ETH fell 20%.
Sun has reportedly purchased 377,590 ETH at an average price of $3,051 since February 2024. Over the weekend, ETH traded below his average purchase price, causing a $280 million loss on his portfolio.
Following his clarification, the Tron founder also took out an X to provide reassurance to the crypto community. He believes that investors should not worry about a market crash because the industry has "seen significant growth over the past year."
Justin Sun also stated that the market volatility is “not due to negative news” and refused to participate in the ongoing FUD. For him, the community should reject FUD and “keep building” the industry. Therefore, he announced the establishment of a fund to fight against negative sentiment and invest in the crypto industry.
According to the post, the $1 billion fund will be used to “combat FUD, increase investment, and provide liquidity,” but further details of the project have not yet been revealed.
The cryptocurrency community criticized Sun’s proposal, claiming that the Tron founder had previously issued “false statements.” Meanwhile, others questioned the purpose of the funds, wondering if it would be used to “pay Twitter bots” or “hire anti-FUD units.”
Investors claimed that Sun was “creating panic to fight panic,” while others called on him to “buy back $1 billion,” as he did when the German government sold off Bitcoin. Still, some community members praised his efforts to calm the community during the market turmoil.
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