- Justin Sun spoke to X to address liquidation rumors.
- The statement comes as cryptocurrencies are in free fall.
Tron founder Justin Sun has denied rumors that his positions were liquidated following a fall in cryptocurrency prices.
Rumors began circulating on X early Monday morning Asian time after an account with just over 11,000 followers posted, “Justin Sun has finally been liquidated.”
“The rumors that our positions are being liquidated are false,” Sun said. “We rarely use leveraged trading strategies because we believe such transactions 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.”
Rumors that our positions are being liquidated are false. We rarely engage in leveraged trading strategies because we believe that these transactions do not significantly benefit the industry. Instead, we prefer to engage in activities that provide greater support to the industry and…
– HE Justin Sun 孙宇晨 (@justinsuntron) August 5, 2024
Some X users noted the word “rarely” in the statement and asked the Tron founder what he meant by that, but Sun offered no clarification.
The tweet
THE tweet What sparked the speculation included a screenshot allegedly showing Sun’s cryptocurrency holdings. The post garnered nearly 356,000 impressions.
However, it appears that the image was taken from the X account of crypto markets firm Parsec, which published the same screenshot with the caption “a day full of chain liquidations”.
The original post made no reference to Sun.
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The rumors emerged after the price of Bitcoin fell 13% in the past 24 hours to $52,864, a 24.1% drop in the past seven days.
Meanwhile, Ethereum has dropped 20% to $2,324 over the past 24 hours, a 30.5% drop over the week. This decline effectively erases its gains for the year.
In total, the total value of the cryptocurrency market has fallen by almost 17% in the last 24 hours to reach $1.8 trillion.
Investors have been selling riskier assets like cryptocurrencies as fears of a recession loom.
In the United States, the tech-heavy Nasdaq index fell 3.4% last week after unimpressive quarterly results from tech giants like Amazon.
The week ended the Nasdaq’s worst three-week streak since September 2022.
The fall in cryptocurrencies was also linked to weaker-than-expected jobs reports, as the Federal Reserve opted to hold interest rates steady instead of promising a rate cut in September that many investors had bet on.
Callan Quinn is DL News’ Asia correspondent. Got a tip? Email callan@dlnews.com.