- 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.
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