Ethereum

2024

Rekt

Rise

<p>The 18% drop in the broader crypto market over the past 24 hours has sent major shockwaves leading to huge liquidations in the leveraged positions. With the Ethereum price tanking over 20%, several rumors started floating that Tron founder Justin Sun got rekt with more than $152 million in liquidations of the leveraged positions. However, the Tron founder denied these developments clearing the air on the liquidation process.</p>
<h2 id="justin-sun-clears-air-on-liquidations">Justin Sun Clears Air on Liquidations</h2>
<p>The recent sell-off in the crypto market in the Asian trading hours on Monday has led to more than $1 billion in total <a href="https://coingape.com/crypto-market-crash-liquidations-cross-800-million-as-japans-nikkei-drops-7/" target="_blank" rel="noopener noreferrer nofollow">crypto market liquidations</a>. Most of the traders with leveraged long positions got Rekt with rumors suggesting that Justin Sun was one of them.</p>
<blockquote class="twitter-tweet">
 <p dir="ltr" lang="en">Justin Sun potentially getting liquidated could be the reason for that nasty -20% wick on <a rel="noopener noreferrer nofollow" href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> <a rel="noopener noreferrer nofollow" href="https://t.co/amPsbnmrbu">https://t.co/amPsbnmrbu</a></p>
 <p>— Johnny (@CryptoGodJohn) <a rel="noopener noreferrer nofollow" href="https://twitter.com/CryptoGodJohn/status/1820288004033773789?ref_src=twsrc%5Etfw">August 5, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>The Tron founder, however, has dismissed the rumors stating that he and his team rarely engage in any leverage trading strategies. As per Justin Sun, leverage trades bring no benefit to the crypto market.</p>
<p>Instead, the Tron founder said that he and his team focus more on activities that support the crypto industry and entrepreneurs. He added that the Tron team remains focused on activities such as working on blockchain projects, staking, running nodes, or assisting project teams in providing liquidity.</p>
<blockquote class="twitter-tweet">
 <p dir="ltr" lang="en">The rumors about our positions being liquidated are false. 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 provide greater support to the industry and…</p>
 <p>— H.E. Justin Sun 孙宇晨 (@justinsuntron) <a rel="noopener noreferrer nofollow" href="https://twitter.com/justinsuntron/status/1820329108494320116?ref_src=twsrc%5Etfw">August 5, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>Also Read: <a href="https://coingape.com/crypto-prices-today-august-5-btc-tanks-10-eth-crashes-20-altcoins-in-bearish-state/" target="_blank" rel="noopener noreferrer nofollow">Crypto Prices Today August 5: BTC Tanks 10%, ETH Crashes 20%, &amp; Altcoins In Bearish State</a></p>
<h2 id="liquidations-on-the-rise">Liquidations On the Rise</h2>
<p>There’s a strong volatility in the crypto market as the <a href="https://coingape.com/markets/will-bitcoin-price-bottom-at-50k-amid-growing-speculation-of-fed-rate-cut/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin price</a> tanked further all the way to $50,000. However, it has recovered at press time to $52,800 levels. The daily trading volumes have shot up by 161% to a staggering $71.8 billion.</p>
<p>Bitcoin critic Peter Schiff believes that the situation can worsen once the US market trading begins on Monday. The US futures are already down heavily as of now. Schiff predicts a strong liquidation coming in the <a href="https://coingape.com/bitcoin-etf-can-see-15-30-gap-down-from-jan-levels-on-monday-says-peter-schiff/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin ETF</a> market, expecting a 30% gap down.</p>
<blockquote class="twitter-tweet">
 <p dir="ltr" lang="en">As I warned <a rel="noopener noreferrer nofollow" href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> has taken out the March low. It’s now trading $51K. That’s a 20% decline from where it was trading when the <a rel="noopener noreferrer nofollow" href="https://twitter.com/hashtag/BitcoinETFs?src=hash&amp;ref_src=twsrc%5Etfw">#BitcoinETFs</a> closed on Friday. So this is a <a rel="noopener noreferrer nofollow" href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw">#Crypto</a> Black Monday. Look out below! <a rel="noopener noreferrer nofollow" href="https://t.co/CK1rHutgly">https://t.co/CK1rHutgly</a></p>
 <p>— Peter Schiff (@PeterSchiff) <a rel="noopener noreferrer nofollow" href="https://twitter.com/PeterSchiff/status/1820344630036115600?ref_src=twsrc%5Etfw">August 5, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>Amid fears of a US recession and hard landing, there are talks about the hard landing in the US economy. However, some reports also suggest that the Fed could intervene even before September to announce a 50 bps rate cut.</p>
<p>Also Read: <a href="https://coingape.com/jump-trading-dumping-ethereum-which-crypto-is-next/" target="_blank" rel="noopener noreferrer nofollow">Jump Trading Dumping Ethereum, Which Crypto Is Next?</a></p>
<p>The post <a href="https://coingape.com/tron-founder-justin-sun-bursts-rumors-of-leverage-trading-liquidations/" rel="noopener noreferrer nofollow">Tron Founder Justin Sun Bursts Rumors of Leverage Trading Liquidations</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.</p>

Tron Founder Justin Sun Bursts Rumors of Leverage Trading Liquidations

Table of Contents

Coingape News Media

Other articles published on Aug 5, 2024

Bitcoin Cash and Dogwifhat Show Bearish Signals: Insights

Trump Envisions Bitcoin as Solution to US National Debt: ‘A Very Big Thing’

Streamlining Project Deployment in the Blockchain Industry in 2024

Dogecoin Core To Undergo Major Upgrade, Here’s Why It’s Important

BlackRock Issues Urgent Warning Over Rising Crypto Scams Targeting ETF Investors

Weekly Article Recap: 7/22-7/26

Join our free newsletter for daily crypto updates!