Justin Sun May Have Used Market Meltdown to Scoop Up Millions of Dollars Worth of Ethereum (ETH) at Discounted Prices

The cryptocurrency market has been rocked by a seismic sell-off over the past 24 hours, with the two largest digital assets, Bitcoin (BTC) and Ethereum (ETH)

The cryptocurrency market experienced a significant downturn over the past 24 hours, with leading digital assets, Bitcoin (BTC) and Ethereum (ETH), facing a steep decline of over 20% in value.

At the center of this market turbulence is Justin Sun, the founder of the TRON blockchain. On-chain data suggests that Sun may have used this market pullback to purchase millions of dollars worth of Ethereum at discounted prices.

According to a report by Fortune, this market sell-off occurred against a backdrop of broader stock market sell-offs, driven by a disappointing jobs report and perceived inaction by the Federal Reserve (Fed).

Despite recent positive developments in the crypto sector, such as the launch of Ethereum ETFs in the US in July, digital assets mirrored the stock market downturn. The total crypto market capitalization dropped from over $2.5 trillion on July 28 to approximately $1.9 trillion on Monday, marking the most substantial loss since 2022.

Crypto market maker Wintermute attributed the crypto plunge to the US jobs report, highlighting a "unexpected" occurrence. The firm noted liquidations of over $1 billion in digital asset positions overnight, along with a $57 billion decline in altcoin market capitalization.

Of particular note was a selloff by Jump Trading, a Chicago-based trading firm that had played a significant role in the crypto industry before scaling back amid collapses and regulatory scrutiny.

On-chain data from Spot On Chain indicated Jump moving $47 million worth of Ethereum to centralized exchanges (CEXs), though Wintermute cautioned against oversimplifying market movements by attributing them solely to Jump's actions.

Amid this market turmoil, attention shifted to Justin Sun, the founder of the TRON blockchain, following reports of a suspicious address linked to Sun purchasing 16,236 ETH with 37 million USDT stablecoin, as ETH plummeted to $2,112 on Monday, with an average purchase price of $2,279.

The address, created three hours prior, is alleged to have withdrawn 38 million USDT from the HTX exchange before acquiring the ETH tokens. This address is further speculated to belong to Sun due to its behavior mirroring previous ETH purchases by him.

Notably, Sun is reported to hold over 700,000 ETH, with recent data showing a substantial loss of around $280 million as Ethereum's value dropped by 20%. Since February 8, 2024, Sun is alleged to have accumulated 377,590 ETH across three wallets, costing an estimated $1.15 billion.

Despite Ethereum trading well below his average buying price of $3,051, Sun has denied rumors of liquidation in a social media post, stating:

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. Instead, we prefer to engage in activities that provide greater support to the industry and entrepreneurs, such as staking, running nodes, working on projects, and helping project teams provide liquidity.

At the time of writing, ETH has managed to bounce back to the $2,460 level, with a 346% increase in trading volume over the past 24 hours, amounting to $76 billion, according to CoinGecko data.

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