Justin Sun denied liquidation rumors as the crypto market plunged nearly 17%

Justin Sun takes X to face liquidation rumours. The announcement comes as crypto is in free-fall.

Tron founder Justin Sun Denied His positions were rumored to have been canceled due to the fall in cryptocurrency prices.

Rumors spread on X on Monday morning Asian time after he posted “Justin Sun is finally liquidated” with just over 11,000 followers.

“The rumors that our positions will be canceled are untrue,” Sun said. “We rarely engage in leveraged trading strategies because we believe such trades do not significantly benefit the industry.

“Instead, we prefer to engage in activities that are more supportive of the industry and entrepreneurs, such as staking, running nodes, working on projects and helping project teams provide liquidity.”

Rumors that our posts will be abolished are untrue. We rarely engage in leveraged trading strategies because we believe such trades do not significantly benefit the industry. Instead, we prefer to engage in activities that further support the industry and…

– HE Justin Sun 孙宇晨 (@justinsuntron) August 5, 2024

Some X users spotted the word “rare” in the statement and asked Tron's founder what he meant by that, but Sun offered no explanation.

The Tweet This led to speculations that included a screenshot showing Sun's crypto holdings. The post received nearly 356,000 impressions.

However, the image was taken from the X account of crypto markets company Parsec has been posted The same screenshot is titled “A meaty day for on-chain liquidations.”

There is no mention of Surya in the original post.

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The rumors came after the price of Bitcoin fell 13% to $52,864 in the last 24 hours, representing a 24.1% decline in the last seven days.

Meanwhile, Ethereum has fallen 20% in the past 24 hours to $2,324, down 30.5% on the week. The decline effectively wipes out its profits for the year.

In total, the total value of the crypto market has fallen nearly 17% in the last 24 hours to $1.8 trillion.

Investors have sold riskier assets such as cryptocurrencies due to fears of a recession.

In the US, the tech-heavy Nasdaq fell 3.4% last week after less-than-impressive quarterly earnings from tech giants such as Amazon.

The week capped the Nasdaq's worst three-week stretch since September 2022.

The crypto drop was tied to weaker-than-expected jobs reports as the Federal Reserve opted to hold interest rates on hold instead of promising a rate cut in September, which many investors had bet on.

Callan Quinn is News Asia Correspondent. Got a tip? Email at [email protected].