TRON’s founder Justin Sun appears unfazed by his nearly $300 million losses, having pledged $1 billion to combat FUD.
Justin Sun, founder of the TRON ecosystem, has announced the creation of a $1 billion fund in an effort to “combat FUD” after experiencing significant losses due to the recent market turbulence. In an X post on Aug. 5, Sun reassured his followers, saying that the industry has “grown significantly over the past year, and this market fluctuation isn’t due to negative news.”
“We should reject FUD and keep building. That’s why we’re creating a $1 billion fund to combat FUD, invest more, and provide liquidity.”
Justin Sun
The pledge follows a report by X account Spot on Chain, which revealed that Sun incurred a loss of approximately $280 million due to Ethereum’s recent 20% price plunge.
How much did your portfolio drop today?Justin Sun took a hit of ~$280M as #Ethereum nosedived by 20%!Since Feb 8, 2024, he reportedly accumulated 377,590 $ETH (est. cost: $1.15B) via 3 wallets. But now $ETH is trading well below his average buying price of $3,051!Still,… https://t.co/B7GAzQEiyM pic.twitter.com/6vAzRGR85N
— Spot On Chain (@spotonchain) August 5, 2024
Since February, Sun reportedly accumulated over 377,500 (ETH) at an estimated cost of $1.15 billion through three wallets. With Ethereum’s price currently trading well below his average purchase price of $3,051, Sun’s holdings have significantly devalued, the account noted.
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“We rarely engage in leveraged trading”
Amid the market’s plunge, reports emerged saying that Sun had been liquidated. The TRON founder refuted the rumors, adding that his affiliates “rarely engage in leveraged trading strategies because we believe such trades do not significantly benefit the industry.”
“Instead, we prefer to engage in activities that provide greater support to the industry and entrepreneurs, such as staking, running nodes, working on projects, and helping project teams provide liquidity.”
Justin Sun
This is not the first instance of Sun making headline-grabbing announcements. In early July, as the German government began liquidating thousands of confiscated Bitcoin (BTC), Sun publicly declared his “willingness” to negotiate a direct purchase to mitigate market impact. Despite his pledge, Bitcoin’s price fell below $55,000, and it remains unclear whether Sun engaged with the German authorities on the matter at all.
Read more: Tron’s Justin Sun reveals gas-free stablecoin transfer solution development
