- Justin sun sinks million in Ethereum based DeFi protocols ignoring the ones based on Tron.
- Sun’s wallet takes up over 25% of Big Data Protocol volume.
- Tron uptrend is intact, but resistance at $0.055 remains stubborn.
Justin Sun, the founder of TRON (TRX), a cryptocurrency project focused on providing smart contract utility, has invested a colossal amount of money in Ethereum-based decentralized finance (DeFi) projects. The underwater investment information was shared on Twitter by Igor Igamberdiev, a research analyst at The Block.
Justin Sun ignores Tron-based DeFi protocols
According to Igamberdiev, Sun changed to a new address after exposing the previous one for Big Data Protocol (BDP) farming. The data shared on Twitter reveals that the founder has invested more than $1.6 billion in Ethereum-based DeFi projects.
Apparently, one of Sun’s addresses had once made a transaction that made up 25% of the Big Data Protocol volume. Data from The Block research revealed that Sun had roughly 661,000 WETH, about 229 million USDT, nearly 162 USDC, and 150 WBTC.
The rest of the funds have been distributed to other DeFi projects such as Chainlink (4.9 million), SushiSwap (7 million), Uniswap (3.4 million), Aave (144,000) among others.
Igamberdiev says that “this amount of money in a fresh farm with a dubious use case raises certain concerns.” Moreover, it raises many questions why Sun is not supporting projects on his TRON Blockchain. It is also likely that such large volume holding is geared toward pumping and dumping; in the end, it hurts smallholders of the tokens.
At the time of writing, TRON is trading at $0.05 amid a gradual recovery from the price drop in February. Support at the 200 Simple Moving Average (SMA) played a key role in the rebound. However, TRX has not sliced through the hurdle at $0.055, delaying the uptrend.
The least resistance path is upwards at the time of writing, supported by the Moving Average Convergence Divergence (MACD). Besides, holding above $0.05 would allow bulls to focus on breaking the hurdle at $0.055.
TRX/USD 4-hour chart
Note that the longer bulls take to break the resistance at $0.055, the stronger the selling pressure becomes. In other words, overhead pressure will rise toward the immediate support at $0.05. On the downside, other support levels to keep in mind are the 50 SMA and the 200 SMA.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Sleeping Giants: Hedera Hashgraph price could shock the world
HBAR price shows a drop in volume amidst the current downtrend. Hedera Hashgraph has the potential to rally towards 2000%. Traders should keep the smart contract alternative token on their watchlists and consider a dollar cost average approach for investing.
Solana Price Prediction: How many hacked wallets does it take to spark a bull run?
Solana price continues to show mixed signals during the 2nd trading week of August. While several cryptocurrencies have displayed bullish vengeance, the centralized smart contract token has failed to reconquer losses experienced since May 12.
Is a 75% decline still possible for the Ethereum Classic price?
Ethereum Classic price rallied 100% between July 12 and July 24 before a short consolidation unfolded. After a few shallow days of sideways congestion, the Ethereum Classic price kicked off another 90% rally. Invalidation of the uptrend is dependent on $13 holding as support.
Ethereum Price Prediction: Get ready for a Wall Street discount
Ethereum price breaches target one at $1800, which was mentioned in July’s market bottom thesis. ETH price shows an influx of deposits on all exchanges. The midterm bullish forecasts are dependent on $1250 holding as support.
Bitcoin: If bulls lose control here, BTC could revisit $21,000
Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection, its technicals support a bearish outlook for the leading crypto.