Tron’s Justin Sun Denies Liquidation Rumors

• Justin Sun announced a $1 billion fund to combat fear, uncertainty, and doubt in the cryptocurrency market.
• Sun denied rumors of his positions being liquidated, emphasizing Tron’s focus on industry-supportive activities.
• The crypto community remains skeptical, despite Sun’s efforts to clarify his stance and support the industry.

Tron co-founder Justin Sun has launched a $1 billion fund aimed at combating fear, uncertainty, and doubt (FUD) in the crypto space during volatile times. This announcement comes amid swirling rumors about his cryptocurrency holdings being liquidated.

Sun Dismisses Liquidation Rumors

Early Monday morning, an X account posted details claiming Sun’s positions were liquidated. Sun quickly addressed these rumors, calling them “false.” He emphasized that Tron rarely engages in leveraged trading, focusing instead on projects that support the industry and innovators.

Sun stated that his company prefers activities that provide more backing to the sector, such as developing projects and supporting teams with liquidity. This approach, he believes, is more beneficial for the industry than leveraged trading.

Despite Sun’s clarification, the crypto community remained skeptical. The word “rarely” used by Sun prompted further inquiries, with some suggesting that his statement did not fully address the rumors. Retired Bitcoin enthusiast Jeff Kirdeikis challenged Sun to prove his commitment by purchasing $1 billion worth of BTC.

Details of the Rumor

The liquidation rumor originated from a tweet with a screenshot purportedly showing Sun’s crypto holdings. However, the image was initially posted by Parsec, a decentralized analytics platform, without any reference to Sun. Adding to the speculation, former BitMEX CEO Arthur Hayes mentioned hearing from traditional finance sources about a significant player’s heavy losses, though he did not name anyone.

These rumors circulated as Bitcoin dropped 14% to $52,400, with a 13% decline in its market cap to $1.03 trillion. Ethereum also fell 20.5% to $2,300, down 32% over the week. The broader market downturn saw the Nasdaq slide 3.4% following disappointing earnings from tech giants like Amazon.

Sun’s Previous Market Moves

Last month, Sun proposed buying Bitcoin off-market from the German government during its sell-off. He also made headlines recently by purchasing 1,614 Ether ahead of the launch of spot Ether exchange-traded funds (ETFs).

Addressing these issues, Sun reiterated his stance against high-risk leveraged trading, emphasizing Tron’s focus on more constructive activities like staking, operating nodes, and providing liquidity support to project teams.