Buying The Ethereum Dip? New Address Tied To Crypto Mogul Justin Sun Purchases 16,000 ETH
06 August 2024 - 3:00PM
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The cryptocurrency market has been rocked by a seismic sell-off
over the past 24 hours, with the two largest digital assets,
Bitcoin (BTC) and Ethereum (ETH), plummeting over 20% in value. At
the epicenter of the chaos is one of the industry’s biggest names –
Justin Sun, the founder of the TRON blockchain. On-chain data
suggests that Sun may have used the pullback to scoop up millions
of dollars worth of Ethereum at discounted prices. Market Meltdown
Wipes Out $600 Billion According to a Fortune report, this market
upheaval unfolded against a backdrop of widespread stock market
sell-offs triggered by a disappointing jobs report and perceived
inaction by the Federal Reserve (Fed). Despite recent
positive developments in the crypto sector, such as the launch of
Ethereum ETFs in the US in July, digital assets mirrored the stock
market downturn. The total crypto market cap tumbled from over $2.5
trillion on July 28 to approximately $1.9 trillion on Monday,
marking the most substantial loss since 2022. Related
Reading: Bitcoin RSI Goes Bearish For The First Time Since August
2023, Will It Crash Below $40,000? Crypto market maker Wintermute,
described the crypto plunge to Fortune as “unexpected,” and
attributed it to the US jobs report. The firm noted liquidations
surpassing $1 billion in digital asset positions overnight, along
with a $57 billion decline in altcoin market capitalization.
Noteworthy was a selloff from Jump Trading, a Chicago-based trading
firm that had played a significant role in the crypto industry
before scaling back amid collapses and regulatory scrutiny.
On-chain data by Spot On Chain indicate Jump moving $47 million
worth of Ethereum to centralized exchanges (CEXs), though
Wintermute cautioned against oversimplifying market movements by
attributing them solely to Jump’s actions. Sun’s Ethereum Shopping
Spree Amid this market turmoil, attention turned to Justin
Sun, the founder of the TRON blockchain. Reports surfaced of a
suspicious address linked to Sun buying 16,236 ETH with 37 million
USDT stablecoin, as ETH plummeted to $2,112 on Monday, with an
average purchase price of $2,279. The address, created three
hours prior, allegedly withdrew 38 million USDT from the HTX
exchange before acquiring the ETH tokens. It is further alleged
that this address belongs to Sun due to its behavior mirroring
previous ETH purchases by him. Related Reading: Why Is The
Shiba Inu Price Crashing Today? Notably, Sun reportedly holds over
700,000 ETH, with recent data showing a substantial loss of around
$280 million as Ethereum’s value dropped by 20%. Since February 8,
2024, Sun allegedly accumulated 377,590 ETH across three wallets,
costing an estimated $1.15 billion. Despite Ethereum trading well
below his average buying price of $3,051, Sun has denied rumors of
liquidation. In a social media post, Sun stated: The rumors about
our positions being liquidated are false. We 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. At the time of
writing, ETH has managed to bounce back to the $2,460 level, with a
346% increase in trading volume over the past 24 hours, amounting
to $76 billion, according to CoinGecko data. Featured image
from Shutterstock, chart from TradingView.com
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