Justin Sun refutes liquidation rumors after $280 million loss from Ethereum crash

Justin Sun, the founder of the Tron blockchain, was among the numerous crypto traders affected by today’s heavy market volatility. Blockchain analytical firm SpotOnChain reported that Sun’s portfolio took a $280 million hit following the 20% decline in Ethereum’s price.

An image from the crypto analytical firm showed that the entrepreneur had acquired 377,590 ETH for about $1.15 billion via three wallets over the last seven months. Per the data, his average purchase cost was $3,051, far above ETH’s current price of $2,246.17.

Justin Sun dismisses liquidation rumors

This huge loss, along with earlier rumors, led to speculations that Sun and his team suffered massive liquidations that contributed to today’s market crash. However, the Tron founder has refuted such claims.

Justin SUn
Justin Sun Losses (Source: SpotOnChain)

According to Sun, his team does not engage in leverage trading as they prefer to adopt trading strategies that benefit the entire crypto industry. He said:

“The rumors about our positions being liquidated are false. We rarely engage in leveraged trading strategies because we believe such trades do not significantly benefit the industry.”

The TRON Network founder pointed out that his team was more involved in staking, working on crypto projects, providing liquidity to crypto protocols, and running blockchain nodes. To support his point, he added that his team will create a $1 billion fund to “combat FUD, invest more, and provide liquidity.”

Other traders lose over $1 billion

While Sun denies being liquidated, not many crypto traders can say the same after the recent crash that saw Bitcoin drop below $50,000 for the first time in almost six months. Several digital assets saw double-digit losses, with Bitcoin crashing by 16%, while Ethereum fell by around 20%. Other top ten digital assets, including the Binance-backed BNB token, fell 20%, while SOL saw a 21% decline.

Data from Coinglass showed that this market performance resulted in the liquidation of more than 300,000 crypto traders who cumulatively lost over $1 billion. Notably, the single largest loss was recorded by a long trader with a $27 million bet on Bitcoin price moving upward on the Huobi exchange.

Crypto Market Liquidations
24 Hours Crypto Market Liquidations (Source: CoinGlass)

Meanwhile, analysts have attributed the crypto market’s sudden crash to macroeconomic conditions and crypto-specific actions of firms like Jump Crypto, which divested a substantial part of its ETH holdings. However, others like Matt Hougan, the CIO of Bitwise, remain bullish about the market. Hougan posited that today’s price action “plays into the long-term story for Bitcoin.”


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