$1 Billion Crypto Fund Against FUD Announced By Justin Sun

Amid the cryptocurrency market crisis, rumors emerged that Tron founder Justin Sun’s positions had been liquidated. Sun denied the rumors and criticized the community’s FUD (fear, uncertainty, and doubt), pledging to create a fund to help the industry.

Justin Sun denies liquidation rumors

Over the weekend, the cryptocurrency market experienced a significant pullback that pushed its market capitalization below the $2 trillion mark. As a result, hundreds of thousands of positions were liquidated, amounting to more than $1 billion.

Related Reading: Here’s Why Bitcoin and Ethereum Prices Crashed

As reports of mass liquidations mounted, the community speculated on which entities faced some of the $372 million Ethereum (ETH) liquidations. One report caught the attention of investors after claiming that “Justin Sun has finally been liquidated.”

The rumors intensified when Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, shared on X that “someone big got smoked and is dumping all of crypto.” Hayes said the information came from his “TradFi birds” but did not name names.

Community speculates about Sun's liquidations. Source: Arthur Hayes on X

Some speculated that Hayes was referring to the Tron founder and his team, which apparently intensified fears. However, Sun clarified that the rumors were false and criticized leveraged trading strategies. He said that they “rarely engage” in these strategies because they don’t believe they benefit the industry.

Additionally, he stressed that he prefers activities that “provide greater support to the industry and entrepreneurs, such as staking, running nodes, working on projects, and helping project teams provide liquidity.”

After dispelling liquidation rumors, blockchain analytics firm Spot on Chain revealed that Sun’s portfolio was hit by the cryptocurrency market downturn. According to the report, Sun’s ETH holdings saw a massive drop in value after the second-largest cryptocurrency fell by 20%.

Sun reportedly purchased 377,590 ETH since February 2024 at an average price of $3,051. His portfolio suffered a $280 million loss after ETH’s trading price fell below its average purchase price over the weekend.

Billion-dollar crypto fund to ‘fight FUD’

After clarifying his remarks, the Tron founder also took to X to reassure the crypto community. He believes that investors should not worry about the stock market crash as the sector has “experienced significant growth over the past year.”

Sun also suggested that the market fluctuation “is not due to negative news” and refused to participate in the ongoing FUD. For him, the community should reject the FUD and “continue to build” the sector. As a result, he announced the creation of a fund to combat negative sentiment and invest in the cryptocurrency industry.

Sun annouces fund to fight FUD. Source: Justin Sun on X

According to the publication, the billion-dollar fund will be used “to combat FUD, further invest and provide liquidity,” but further details about the project have yet to be revealed.

The crypto community criticized Sun’s proposal, saying the Tron founder has made “fake announcements” before. Others also questioned the purpose of the funds, wondering whether they would be used to “pay Twitter bots” or “hire counter-fud units.”

Investors claimed that Sun was “creating FUD to fight FUD,” while others called on him to “buy back the billion dollars in assets,” as he had proposed during the German government’s Bitcoin sale. Still, some community members praised his efforts to reassure the community during the market turmoil.

Ethereum is trading at $2,242 in the three-day chart. Source: ETHUSDT on TradingView

Featured image from Unsplash.com, chart from TradingView.com