Report Says Bitcoin Market Fluctuation Liquidated Sun’s Assets, Sun Refutes
Earlier today, a report said there was a substantial drop in the cryptocurrency market, allegedly leading to the liquidation of leveraged transactions owned by well-known TRON founder, owner of Poloniex exchange, and BitTorrent CEO Justin Sun. The world’s most popular cryptocurrency, bitcoin, experienced a 10.75% decline in a few hours due to the recent Bitcoin crash.
Bitcoin’s value crashed to below $52,718.63 from its peak trading price of about $67,000. This led to significant liquidations on many exchanges. Numerous factors, such as increased regulatory scrutiny, a bearish sentiment in the market, and a wave of sell-offs by short-term investors, have been blamed for this abrupt decline.
Spontonchain, an industry analytical platform, posted on its X handle revealing that Tron is yet to sell any part of its 377,590 ETH it bought earlier in February. The purchased assets were worth $1.15 billion as at time it was bought – months before Ethereum went up by 20%.
Industry Pioneers Tasks on Management Improvement, Remains Optimistic
Several industry experts who have spoken on the matter have emphasized the need for improved risk management. David Mercer, CEO of LMAX Group, said, “There are advantages and disadvantages to leveraged trading.” It exposes traders to increased risk even while it has the potential to yield bigger returns.
The entire market capitalization of cryptocurrencies fell by over $200 billion in the wake of the Bitcoin crash, which had a knock-on effect on the rest of the market. As of press time, Bitcoin market capitalization has dropped to $1,040,458,220,028.
Some analysts are optimistic about the long-term prospects of the cryptocurrency market amid the decline. Meltem Demirors, Chief Strategy Officer at CoinShares, noted, “Volatility is an inherent part of the crypto landscape.”
Sun Refutes Claim of His Bitcoin Liquidation, Announces Future Projects
Sun has come out to dismiss the tending rumours that his Bitcoin has been liquidated as a result of unsteady market performance. On his X handle, Sun posted that Tron barely participated in such a trading strategy. He said he’s more interested in finding new ways to uplift the cryptocurrency industry. He mentioned his future interests, like liquidity provision, running nodes, and staking.
Sun has assured the cryptocurrency community that the recent market behavior is not as a result of bad news. He has urged the rest of the market to ignore doubts, fear, and uncertainty. Sun has also announced the development of his $1 billion project to fight against Fear, Uncertainty, and Doubt (FUD).
These funds will also be extended to provide liquidity for interested parties as well as to encourage more cryptocurrency investment. However, some cryptocurrency community members have remained skeptical on this matter, trying to find a correlation between the rumour and Sun’s latest announcement. A popular Bitcoin influencer, Jeff Kirdeikis, has challenged Sun’s latest post, calling his proposed $1 billion project a bluff.
BitMEX’s Former CEO And Parsec’s Assertions Resurface, Dominates Discussion
Kirdeikis’s post on his X handle showed Sun’s holdings, with a caption that suggests that Sun’s assets have been liquidated. Parsec, a decentralized cryptocurrency analytics platform, has posted a similar post announcing the Sun’s supposed liquidation.
This added to the early statement by BitMEX’s former CEO Arthur Hayes, who speculated that his internal sources informed him that a prominent Bitcoin investor has a heavy loss due to the fluctuation in the market. Hayes said this without revealing the particular investor.
The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Tron Foundation and Justin Sun as early as March 2023. SEC accused Sun and Tron of manipulating activities in the market and issuing unregistered securities.
Sun has refuted these allegations, describing it as mere speculation without proof. SEC also accused Sun of planning to distribute billions of cryptocurrency assets and artificially increase its value to attract more clients. Furthermore, the SEC insisted Sun actively manipulated BitTorrent’s BTT token’s market price.
DISCLAIMER: It's crucial we tell you that the content on this page is not meant to serve as, nor should it be construed as, advice in legal, tax, investment, financial, or any other professional context. You should only invest an amount that you are prepared to lose, and it's advisable to consult with an independent financial expert if you're uncertain. To obtain more information, we recommend examining the terms of service and exploring the assistance and support resources provided by the issuing or advertising entity. Our platform is dedicated to delivering accurate and unbiased reporting, but it's important to note that market circumstances can change rapidly. Also, be informed that some, though not all, articles on our site may be sponsored or paid content.
