Tron founder Justin Sun has denied claims that his positions were liquidated amid the sharp decline in cryptocurrency prices.
Justin Sun Denies Liquidity Rumors
The speculation, which started circulating on
“Rumors that our positions have been liquidated are false,” Sun said in response. Sun explained that Tron rarely uses leveraged trading strategies because these strategies do not provide significant benefit to the industry.
Instead, Sun emphasized that the company is focused on supporting the industry through staking, running nodes, and providing liquidity to projects.
The tweet that sparked speculation included a screenshot purportedly showing Sun's crypto holdings, which received nearly 356,000 views.
However, it was later revealed that the image came from Parsec, a crypto markets company, and published the same screenshot with the caption “an active day for on-chain liquidations.” There was no reference to Sun in the original post.
The rumors emerged amid a significant downturn in the cryptocurrency market. Bitcoin (BTC) fell 16% in the last 24 hours to $49,000 and is down 24.1% in the past week.
Ethereum (ETH) fell 22% to $2,111 in the same time period, marking a 30.5% decline for the week and erasing gains for the year.
Overall, the total value of the crypto market fell nearly 17% in the last 24 hours to $1.8 trillion. This selloff reflects investors' concerns about a potential recession, with riskier assets like cryptocurrencies being hit hard.
The US stock market Nasdaq fell 3.4% last week following disappointing quarterly earnings from big tech companies like Amazon. This decline marked Nasdaq's worst three-week period since September 2022.
*This is not investment advice.