3 months ago
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Justin Sun announced the creation of a $1 billion fund aimed at combating fear (FUD) in the crypto space during volatile times.
Tron co-founder Justin Sun has firmly dismissed circulating rumors that his cryptocurrency positions were liquidated during a major bloodbath in the crypto market. These speculations emerged early Monday morning Asia time after an X account posted the details of liquidation.
Within a few hours, Sun addressed the rumor, calling it “false”. He emphasized that Tron “rarely” engages in leveraged trading strategies, as he does not see major benefits for the industry from such trades. According to Sun, his company focuses on activities that offer more backing to the sector and innovators, such as developing projects and supporting teams with liquidity.
$1B Fund to Combat FUD
In a subsequent X post, Justin Sun announced the creation of a $1 billion fund aimed at combating fear (FUD) in the crypto space during volatile times. Although he did not reveal detailed plans for the fund, Sun highlighted the growth of the industry over the past year. He stated:
“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.”
Despite the announcement, the crypto community noted the word “rarely” Sun used in his first post and inquired further. Many believe that his post does not reveal the whole story. Retired Bitcoin enjoyer Jeff Kirdeikis stated:
“Spot buy [$1 billion worth of] BTC, or you’re bluffing.”
Details About Rumor
The tweet that sparked the liquidation rumor attached a screenshot purportedly showing Sun’s crypto holdings and stating, “Justin Sun finally got liquidated.” However, the image was originally posted by the decentralized analytics platform Parsec, with no reference to Sun.
Adding to the speculation, Arthur Hayes, the former CEO and co-founder of BitMEX, posted on X that his sources in traditional finance had told him that a significant player had suffered heavy losses.
“No idea if this is true, I won’t name names, but let the fam know if you are hearing the same?” he added.
These rumors circulated as Bitcoin saw around 14% drop in the past day to $52,400. The cryptocurrency has also experienced a 13% decline in its market cap during the same period, currently standing at $1.03 trillion. Similarly, Ethereum dropped 20.5% to $2,300 in the past 24 hours, down by 32% over the week.
Meanwhile, Nasdaq slid 3.4% last week following disappointing quarterly earnings from tech giants like Amazon.
Last month, as the market reacted to the German government’s Bitcoin sell-off, Sun had proposed to buy all BTC off-market from the country. He was also recently in the news for buying 1,614 Ether ahead of the spot Ether exchange-traded funds (ETFs) launch.
