TRON

Spot

TRON’s founder Justin Sun appears unfazed by his nearly $300 million losses, having pledged $1 billion to combat FUD.
Justin Sun, founder of the <a href="https://crypto.news/tag/tron/" target="_blank" rel="noopener noreferrer nofollow">TRON</a> ecosystem, has announced the creation of a $1 billion fund in an effort to “combat FUD” after experiencing significant losses due to the recent market turbulence. In <a href="https://x.com/justinsuntron/status/1820386648200245409" target="_blank" rel="noopener noreferrer nofollow">an X post</a> on Aug. 5, Sun reassured his followers, saying that the industry has “grown significantly over the past year, and this market fluctuation isn’t due to negative news.”
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 “We should reject FUD and keep building. That’s why we’re creating a $1 billion fund to combat FUD, invest more, and provide liquidity.”
 Justin Sun
</blockquote>
The pledge follows a report by X account Spot on Chain, which revealed that Sun incurred a loss of approximately $280 million due to Ethereum’s recent 20% price plunge.
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 How much did your portfolio drop today? Justin Sun took a hit of ~$280M as <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Ethereum</a> nosedived by 20%! Since Feb 8, 2024, he reportedly accumulated 377,590 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a> (est. cost: $1.15B) via 3 wallets. But now <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a> is trading well below his average buying price of $3,051! Still,… <a href="https://t.co/B7GAzQEiyM" target="_blank" rel="noopener noreferrer nofollow">https://t.co/B7GAzQEiyM</a> <a href="https://t.co/6vAzRGR85N" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/6vAzRGR85N</a>— Spot On Chain (@spotonchain) <a href="https://twitter.com/spotonchain/status/1820392013260620009?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 5, 2024</a>
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Since February, Sun reportedly accumulated over 377,500 (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noopener noreferrer nofollow">ETH</a>) at an estimated cost of $1.15 billion through three wallets. With Ethereum’s price currently trading well below his average purchase price of $3,051, Sun’s holdings have significantly devalued, the account noted.
You might also like: <a href="https://crypto.news/ethereum-nosedives-32-weekly-drop-largest-ytd-loss/" rel="noopener noreferrer nofollow"> Ethereum nosedives: 32% weekly drop, largest YTD loss </a>
<h2 class="wp-block-heading" id="we-rarely-engage-in-leveraged-trading">“We rarely engage in leveraged trading”</h2>
Amid the market’s plunge, reports emerged saying that Sun had been liquidated. The TRON founder refuted the rumors, adding that his affiliates “rarely engage in leveraged trading strategies because we believe such trades do not significantly benefit the industry.”
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 “Instead, we prefer to engage in activities that provide greater support to the industry and entrepreneurs, such as staking, running nodes, working on projects, and helping project teams provide liquidity.”
 Justin Sun
</blockquote>
This is not the first instance of Sun making headline-grabbing announcements. In early July, as the German government <a href="https://crypto.news/germany-transfers-millions-in-bitcoin-to-various-wallets/" target="_blank" rel="noopener noreferrer nofollow">began</a> liquidating thousands of confiscated Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>), Sun publicly <a href="https://crypto.news/justin-sun-teases-willingness-to-negotiate-with-germany/" target="_blank" rel="noopener noreferrer nofollow">declared</a> his “willingness” to negotiate a direct purchase to mitigate market impact. Despite his pledge, Bitcoin’s price fell below $55,000, and it remains unclear whether Sun engaged with the German authorities on the matter at all.
Read more: <a href="https://crypto.news/trons-justin-sun-reveals-gas-free-stablecoin-transfer-solution-development/" rel="noopener noreferrer nofollow"> Tron’s Justin Sun reveals gas-free stablecoin transfer solution development </a>

Justin Sun pledges to create $1b fund to ‘combat FUD’ after facing $280m in losses

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