Bitrabo Editorial
During a downturn in the cryptocurrency market, there were rumors circulating that Justin Sun, the founder of Tron, had his positions liquidated. Sun refuted these claims and criticized the spread of fear, uncertainty, and doubt (FUD) within the community. He declared plans to establish a fund to support the crypto industry.
Refuting Liquidation Claims
The crypto market saw a significant decline over the weekend, causing its overall market capitalization to dip below $2 trillion. Consequently, over $1 billion worth of positions were liquidated.
Related: Reasons Behind the Price Decline of Bitcoin and Ethereum
Speculation within the community grew as reports surfaced about entities facing sizable Ethereum (ETH) liquidations totaling $372 million. One report that gained attention suggested that Justin Sun had been liquidated.
Allegations intensified when Arthur Hayes, BitMEX’s Co-founder, hinted about a significant figure being impacted and selling off all crypto assets. Despite not revealing any names, Hayes mentioned that his sources from traditional finance had provided the information.
It was speculated that Hayes’ comments were directed at Tron’s founder and team, fueling further fear, uncertainty, and doubt. However, Sun clarified that the rumors were unfounded and criticized leveraged trading strategies, stating they were rarely used as they did not benefit the industry.
He emphasized a preference for activities such as staking, running nodes, project development, and aiding liquidity provision rather than engaging in leveraged trading.
After dispelling the liquidation rumors, blockchain analysis revealed that Sun’s ETH holdings suffered losses amid the market downturn. Reportedly, his portfolio took a substantial hit following a 20% drop in ETH’s value, falling below the average purchase price of $3,051 per ETH.
$1 Billion Crypto Fund for “Fighting FUD”
Sun reassured the crypto community, stating that market fluctuations were not due to negative news but due to the industry’s significant growth over the past year. He urged the community to dismiss FUD and continue developing the sector. Consequently, he announced the establishment of a fund to counteract negative sentiments and invest in the crypto industry.
The $1 billion fund aims to combat FUD, increase investments, and enhance liquidity, although specific project details have yet to be disclosed.
Sun faced criticism from the crypto community, questioning his track record of making unsubstantiated announcements. Some wondered about the fund’s intended use, speculating on activities like paying social media bots or creating counter FUD teams.
Some investors accused Sun of adding to the FUD by announcing the fund, suggesting he repurchase the $1 billion in assets, akin to his previous offer during the German Government Bitcoin auction. Nevertheless, some community members commended Sun’s efforts to reassure the community amid market uncertainties.