Justin Sun Loses $66 Million as Ethereum Drops to February Levels
Justin Sun lost $66 million as Ethereum fell to a 5-month low of $2,810 amid a continued market sell-off. Sun’s purchase of 361,000 ETH between February and June saw a $58 million profit wiped out by a 10% price drop. Sun’s proposal to help Germany manage the massive bitcoin sell-off sparks speculation and concerns of manipulation.
Justin Sun reportedly lost $66 million on Friday as the price of Ethereum fell to levels last seen in February. Cryptocurrency markets continue to suffer a massive sell-off, overshadowing optimism for a potential Ethereum spot ETF launch.
There are several signs that Ethereum may not fall much further after Friday’s 10% plunge, despite elevated fear levels.
Justin Sun Loses $66 Million on ETH Price Drop
Spot On Chain reported that the Tron founder and Huobi Global advisor may have seen $58 million in accumulated profits over the past five months vanish when the price of Ethereum dropped to $2,810 on Friday:
“Such a volatile market! Just 24 hours ago, he had a $58M profit from these ETH; but now, it is already a $66M loss after the dump.,” the report said.
According to the report, Justin Sun purchased 361,000 ETH tokens worth approximately $1.1 billion between February and June. Most of the transactions took place on Binance, where he recently transferred several DeFi tokens. The breakdown of transactions over the five months that Sun purchased ETH on Binance includes the following:
- Bought 169,604 Ethereum (ETH) in February via “0x7a9” at an average price of $2,870.
- Bought 176,117 Ethereum (ETH) in April via “0x435” at an average price of $3,177.
- Bought 15,416 Ethereum (ETH) in June via “0xdbf” at an average price of $3,474.
The three wallets often received ETH from Binance right after their stablecoin deposits. The report comes just hours after his proposal to involve the German government to save its bitcoin sales and minimize the impact on the market.
Speculation on Ethereum Spot ETFs
While the idea was noble, the offer drew mixed reactions and speculation about a possible case of market manipulation:
“I think the German government should reject Justin’s offer to buy BTCs through a private OTC transaction. This action, while sounding noble, would actually be market manipulation, and could also lead to corrupt or unethical practices.
Here, only people with the right contacts have access to these BTCs, and possibly at below-market prices. Also, there is no guarantee that the buyer will not sell some of the holdings themselves,” said Guillermo Fernandes, founder and CEO of Blockpliance.
Whether the German government will accept Justin Sun’s offer remains an unknown. Meanwhile, the market remains bearish, with experts reporting extreme fear. According to Coinglass, there have been more than $104 million in ETH liquidations in the last 24 hours.
The crypto community continues to keep an eye on the week of July 15th. According to Bloomberg analysts James Seyffart and Eric Balchunas, this is the revised timeline for potential ETH ETF launches as potential issuers file their amended S-1 forms. However, Seyffart admitted to having “fairly low confidence in these launch date predictions.”
By Leonardo Perez