Crypto Crash Reveals Justin Sun’s $1.1B Ethereum Stash Amid Market Turmoil


In an unprecedented downturn in the cryptocurrency market on Friday, Ethereum, a prominent altcoin, saw a severe plunge of around 10% in its price. Although a minor recovery has been observed since then, this dip in value has thrown light on the crypto assets held by Justin Sun, the founder of Tron and a prominent figure in the world of cryptocurrency.

The crypto storm on Friday prompted Spot on Chain, a blockchain analytics platform, to shed light on Sun’s ventures in Ethereum. According to their report, Sun has allegedly amassed a whopping 361,000 ETH, worth $1.1 billion, over the previous five months.

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The Tron founder embarked on this staggering investment using three different electronic wallet addresses. This included the purchase of 169,604 ETH using an address marked “0x7a9” in February at an average price of $2,870. He further acquired 176,118 ETH via an address labeled “0x435” in April, paying $3,177 per ETH, and another 15,416 ETH using the address tagged “0xdbf” in June at a rate of $3,474 per ETH.

The blockchain analytics platform inferred that these addresses constantly received ETH deposits from Binance after Sun deposited his stablecoins on the said exchange, thereby raising speculations that Sun could be the owner of these wallets.

Adding to the financial stress was the decision by the now-defunct exchange Mt. Gox to reimburse its creditors, as well as the large-scale Bitcoin sell-off by the U.S. and German governments. These occurrences caused Bitcoin’s price to dive by 10% over two days, slipping to a disappointing low of $53,717.

This decline soon infected the rest of the crypto market, leading to Ethereum collapsing by a similar margin to trade at $2810 – its lowest in five months. Consequently, Sun’s purported investments in Ethereum were estimated to have suffered a loss of $66 million.

Amid this turmoil, Sun reportedly approached the German government on Thursday to discuss purchasing their remaining Bitcoin holdings, worth $2.3 billion, in a private transaction. However, it is still unclear if the German government will accept this exchange. Sun’s proposition appears to be guided by his intention to mitigate the impact of their relentless Bitcoin sell-offs on both his personal investments and the cryptocurrency market itself.

At the time of penning this piece, Ethereum showed signs of resilience. It had rebounded by roughly 5% to trade at $2,975, while its daily trade volume had soared by 47.33% to touch $30.47 billion.

The general cryptocurrency market remains on a downswing, with its total cap sliding by 1.02%. However, some assets, like Solana, Avalanche and Shiba Inu, have been able to hold up in these turbulent times, bringing respite to investors. Notably, the meme coin dogwifhat outshone them all with the highest daily gain of 12.28%.