Tron Founder Justin Sun Dispels Leverage Trading Liquidation Rumours

The broader crypto market has seen an 18% drop in the past 24 hours, causing significant liquidations in leveraged positions. Ethereum’s price has plummeted over 20%, sparking rumours that Tron founder Justin Sun faced over $152 million in liquidations.

Sun’s Denial of Liquidation Claims

Justin Sun has refuted these rumours, clarifying that neither he nor his team engages in significant leverage trading. Sun stated that leverage trading is not beneficial for the crypto market. Instead, he and his team focus on activities that support the crypto industry, including blockchain projects, staking, and running nodes.

Surge in Liquidations

The recent market downturn has led to over $1 billion in total liquidations across the crypto market. The volatility has intensified, with Bitcoin’s price falling to $50,000 before recovering to around $52,800. Daily trading volumes have surged by 161% to $71.8 billion.

Expert Predictions

Peter Schiff, a critic of Bitcoin, warns that the situation may worsen with the start of US market trading. He anticipates a severe downturn in the Bitcoin ETF market, predicting a 30% drop. Amid fears of a potential US recession, there is speculation that the Federal Reserve might intervene with a rate cut before September.