By Anisha Pandey
Edited by Julia Sakovich
Updated
3 min read
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.
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.”
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.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
