Justin Sun's $66 Million Ethereum Crash Exposes

Tron Founder Justin Sun Faces Huge Loss Amidst Crypto Market Turmoil

Justin Sun, the founder of Tron and a significant player in the crypto world has found himself in the spotlight due to a significant potential loss tied to the recent dip in Ethereum's price. The rest of the crypto market also had a steep decline which led to Ethereum’s price decline of about 10%. This decline has not only impacted investors globally but also brought into the limelight, Sun’s huge investments in Ethereum. 

What's the News

A News is circulating through a report where Justin Sun has been accumulating Ethereum at a fast pace in the last five months. According to the report, Sun bought 361,000 ETH using three different wallet addresses, which was equivalent to around $1.1 billion.

The breakdown of these purchases is as follows:

• In February, through the wallet address starting with “0x7a9,” Sun bought 169,604 ETH at an average price of $2,870 per ETH.

• In April, using the wallet address “0x435,” he acquired 176,118 ETH at an average price of $3,177.

• Finally, in June, he bought 15,416 ETH via the wallet “0xdbf” at an average price of $3,474.

These acquisitions were noted to have been funded by deposits from Binance, following Sun’s stablecoin deposits on the exchange, suggesting that these wallets belong to him.

The sharp decline in the price of Ethereum, which fell to as low as $2,810, has caused Sun's investments to incur a potential loss of around $66 million. This loss has come at a time when the crypto market is grappling with the aftereffects of the defunct exchange Mt. Gox repaying its creditors, and the substantial Bitcoin sell-offs by the US and German governments.

To this, Sun turned to the German government to buy the rest of the Bitcoins in a private deal since they were valued at $2.3 billion. This is considered an attempt to soften the effects of the constant selling of Bitcoins on his investment portfolio as well as on the rest of the crypto market. Nevertheless, it is still uncertain as to whether the German government shall be willing to take up his offer.

Conclusion

Despite the market turmoil, Ethereum has shown signs of recovery, rebounding by about 5% to trade at $2,975 at the time of writing. The daily trading volume of Ethereum has also surged by 47.33%, reaching a value of $30.47 billion. 

As per CoinGabbar, the heavy loss that Justin Sun is likely to incur shows that the crypto market is very expensive and risky even for the big players. This act of his to try and negotiate with the German government shows that the big investors are not sitting idle but are trying to calm the market. Over time, the crypto community will be observing the further evolution of these dynamics and what other actions Sun may take to secure his assets.

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