Justin Sun Wants to Fight Crypto FUD with $1B Amid Market Downturn
Justin Sun, the founder of the TRON blockchain network, plans to create a $1 billion fund to fight fear, doubt, and uncertainty (FUD) in the crypto market and support the growth of decentralized finance (DeFi) by providing liquidity.
As the market experiences a downturn, Sun aims to use the fund to counter negative sentiment and foster industry growth.
Don't worry! The industry has grown significantly over the past year, and this market fluctuation isn't due to negative news. We should reject FUD and keep building. That's why we're creating a $1 billion fund to combat FUD, invest more, and provide liquidity. 🙏
— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 5, 2024
Addressing concerns about market fluctuations, the TRON founder emphasized the robust growth of the industry over the past year, encouraging the community to stay positive.
“The industry has grown significantly, and this market fluctuation isn’t due to negative news. We should reject FUD and keep building,” he said.
Sun Faces $280M Paper Loss in Ether
Justin Sun’s $1 billion fund pledge comes after reports claimed he incurred significant paper losses due to recent market turbulence. Blockchain data platform Spot On Chain reported that the TRON founder suffered approximately $280 million in paper losses following Etherem’s price crashed induced by US-based trading firm Jump Trading.
Since February, Sun has accumulated over 377,500 ETH at an estimated cost of $1.15 billion through three wallets. With Ethereum’s current price trading well below his average purchase price of $3,051, Sun’s holdings have significantly devalued, the report noted.
Sun Denies Liquidation Rumors
Before unveiling the crypto FUD fund, rumors surfaced that Sun had been liquidated due to the crash. Responding to this, the TRON founder said that his long positions were not liquidated and the rumors were false.
Sun further noted that his affiliates rarely engage in leveraged trading strategies, as they believe such trades do not significantly benefit the industry. Instead, they concentrate on actions that actively support the industry and entrepreneurs, including staking, operating nodes, developing projects, and providing liquidity to teams.
Meanwhile, this is not the first time Sun has publicly expressed his desire to help the crypto industry during turbulent times. In early July when the German government was selling off its bitcoins, the TRON creator expressed his willingness to negotiate a direct purchase from the country to mitigate market impact.
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