Bitrabo Editorial
The sale of Bitcoin by the German government has led to a price drop of 18% in the past month. In an attempt to reduce market disruptions, Justin Sun, the creator of TRON and CEO of BitTorrent, offered to buy the German government’s Bitcoin stash.
Justin Sun’s Initiative for Market Stability
Justin Sun took to social media to express his willingness to negotiate with the German government and purchase their Bitcoin holdings off-market to minimize the impact on the market. He stated his intentions to collaborate for a smoother transition.
“I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.”
Recent data from the intelligence platform Arkham revealed that the German government has been actively selling Bitcoin, with reports suggesting sales of up to $175 million on a single day. Both the US and German governments have transferred around $738 million worth of Bitcoin to exchanges like Kraken, Bitstamp, and Coinbase in the last two weeks.
Arkham’s data indicates that the German government still holds 40,359 BTC ($2.3 billion) in tagged addresses that were initially seized from Banmeet Singh, a narcotics trafficker.
Insight into TRON Founder’s Wealth
Even though Justin Sun’s proposal has attracted attention, details about funding sources and execution plans remain undisclosed. As of February 2024, reports suggest that Justin Sun’s net worth is estimated at approximately $1.4 billion, with crypto assets worth about $1.43 billion, including a significant portion in TRX tokens on the TRON network.
Justin Sun’s involvement in the cryptocurrency space dates back to the launch of the TRON network in 2017 with a vision to decentralize finance and entertainment sectors. With his substantial holdings in TRX and USDD, Sun has made a mark in the industry.
While Sun’s offer to acquire Germany’s remaining Bitcoin stash could potentially stabilize the market, concerns persist about the financial feasibility of such a purchase given the current valuation of the Bitcoin holdings and Sun’s net worth. More transparency and information are needed regarding this prospective transaction.
As of the latest update, Bitcoin is trading at $56,845, experiencing a 5% decrease in the past day, breaching the crucial support level of $60,000. This drop marks a significant shift in Bitcoin’s price trends since May 1st.
Image source: DALL-E, chart data from TradingView.com