Justin Sun, founder of the Tron cryptocurrency project, has denied the rumors about liquidation of their positions. He took to X on Monday, confronting his liquidation buzz.
“The rumors about our positions being liquidated are false,” Justin wrote. “We rarely engage in leveraged trading strategies because we believe such trades do not significantly benefit the industry.”
The rumors about our positions being liquidated are false. We rarely engage in leveraged trading strategies because we believe such trades do not significantly benefit the industry. Instead, we prefer to engage in activities that provide greater support to the industry and…
— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 5, 2024
Rumors started erupting on X platform, early Monday morning, suggesting that Justin faced a liquidation, amid staggering crypto market slump. He was blamed that he and his team liquidated funds, which intensifies the market crash.
One user, with over 11K followers noted that Justin Sun “finally got liquidated.” Another user said that he is in the “verge of liquidation.”
Justin Sun finally got liquidated pic.twitter.com/HC3BQDONvp
— Honeybadger (@HoneybadgerC) August 5, 2024
This is because, the total value of liquidated positions surged past $1 billion in the last 24 hours. This has led two of the biggest cryptocurrencies plummet with Bitcoin hitting further below $50K and Ether dropping below $2,200.
In addition to denying all claims, Justin also criticized leveraged trading strategy, writing that they “rarely” engage in them. This is because they believe such trades do not significantly benefit the industry.
However, he noted that he and his team “prefer to engage in activities that provide greater support for the industry and entrepreneurs, such as staking, running nodes, working on projects, and helping project teams provide liquidity.”
The Crypto Liquidation: Here’s What the Stats Say
According to data from Coinglass, long positions bore the brunt with $900.83 million worth of liquidations. While, short positions had $160.21 million worth of liquidations at press time.
Bitcoin alone saw $362.83 million in liquidations, predominantly from long positions, while Ethereum faced $346.47 million.
During this chaotic moment, 278,022 traders were liquidated and the total liquidations comes in at $1.06 billion. The largest single liquidation order occurred on Huobi between BTC-USD worth value $27 million. The values underscore the market’s current instability and pressure on leveraged trades.
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