In response to circulating rumours about the liquidation of Tron’s positions, Justin Sun, the founder of Tron, has firmly denied these claims in his latest social media posts.
Sun addressed the speculation head-on, stating that neither he nor his team engage in leveraged trading strategies, which are often associated with high risk and volatility in the crypto market. He emphasized that they see little benefit in such practices for the broader industry.
Sun Denies Leveraged Trading Strategies
Sun emphasised Tron’s dedication to bolstering the cryptocurrency ecosystem through more steady operations rather than emphasising leverage. They consist of managing nodes, staking, collaborating on different projects, and supplying liquidity.
He advised everyone to reject fear, uncertainty, and doubt (FUD) and informed the community that the current market changes are not the result of any bad news related to Tron.
Justin Sun declared the establishment of a $1 billion fund to support the business even more and lessen the negative effects of FUD. The objectives of this fund are to dispel false information, make wise investments, and offer liquidity during erratic times. Amid the continuous volatility, Sun’s proactive strategy is to reassure investors and steady market mood.
The cryptocurrency market has seen severe pressure, especially on Monday during Asian trading hours, when there were over $1 billion in total market liquidations.
As prices fell, a lot of traders who had leveraged long positions were shocked. Although there were rumours that Sun may have been one of the affected parties, Sun has categorically denied these rumours and reiterated that leverage trading is not a part of Tron’s strategy.
The broader market volatility continues to be a concern. Bitcoin, for instance, experienced a sharp drop, falling below $50,000 to $49,789.39 at the time of writing. Daily trading volumes have surged by 215%, reaching an astonishing to $203.53 billion, reflecting the market’s intense activity.
More Challenges Ahead?
Commenting on the circumstances, Bitcoin critic Peter Schiff said that when U.S. trading returns, the market may see more difficulties. Schiff expressed his gloomy view by speculating that the Bitcoin ETF market would experience a significant liquidation, possibly with a 30% decline.
Cryptocurrencies are not the only thing experiencing volatility in international markets. Amidst a wider market fall, key U.S. tech stocks have faltered, while Japan’s Nikkei index saw its worst two-day decline since 1987. The S&P 500 has dropped 7% in the last three days, highlighting the general unpredictability and volatility.
Adding to the market’s woes, there are the recent selloffs of Jump Crypto, a significant market maker within the crypto industry. This potential happenings could have contributed to the bearish trend, as market participants react to the uncertainty surrounding one of the key players in the space.
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