Justin Sun has maintained a status as one of many greatest whales within the broader Bitcoin (BTC) and altcoin world. While his strides stay documented, a sequence of recent trades uncovered by CryptoQuant Founder Ki Young Ju may dent his status.
The Justin Sun Bitcoin Long Trades
Earlier media studies have it that HTX reserve displayed some suspicious developments. Following this revelation, Ki Young Ju made a transfer to dig into what’s ongoing.
Coming again together with his report on X, he alleges that the beforehand referenced whale linked to the HTX reserve is Justin Sun. He went additional to state that Sun positioned an extended commerce on Bitcoin when the worth was $67,000. From his investigation, he projected that Sun’s whole place is available in at $420 million.
This HTX whale was Justin Sun.
He opened an extended #Bitcoin at $67K with at the least $420M in positions. Their $USDT reserve is round $24M. Where did all of the collateral come from?
He used $460M value of $stUSDT. It’s his stablecoin challenge with 46% APY. 89% of the provision is in HTX. https://t.co/oSqGQbLw1q pic.twitter.com/icqaMsLHU1
— Ki Young Ju (@ki_young_ju) July 11, 2024
While comparable trades linked to Sun aren’t unusual, the problem is that the HTX liquidity is available in at solely $24 million. This suspicious development doesn’t finish there, Sun allegedly propped the Bitcoin commerce with $460 million value of stUSDT.
Related dangerous bets primarily based on borrowed collateral have posed questionable developments within the crypto ecosystem prior to now. Recall that Curve Finance co-founder Michael Egorov suffered sever CRV liquidations few weeks again. With the worth of Bitcoin sustaining $57,864, the chance of unannounced liquidation is excessive.
However, the stUSDT is confirmed to be a stablecoin linked to Justin Sun. While Young Ju didn’t straight allege market manipulation practices, he did ask the place the collateral backed the Bitcoin bets got here from. This, he showcased is likely to be exhausting to detect. This is as a result of 89% of the stUSDT provide is locked on HTX.
Another FUD or Legit Concern?
Risky bets aren’t unusual within the trade or with Justin Sun. As reported earlier, the Tron Founder not too long ago purchased $5 million value of Ethereum forward of ETF approvals.
As a outstanding determine within the trade, his trades are sometimes below heavy scrutiny. While Ki Young Ju has tagged on-chain Sleuth ZachXBT to hitch the investigation, Justin Sun has chosen to maintain mute on the Bitcoin trades for now.
Until any damning claims are introduced, what many keep in mind is likely to be the push to launch a gas-free stablecoin solution he introduced barely per week in the past.
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