After a dramatic $1 billion liquidation wave among leveraged crypto traders in the past 24 hours, Justin Sun, the founder of Tron (TRX), has unveiled a major relief initiative.
Sun announced on X that he has allocated $1 billion to support the growth and advancement of the cryptocurrency and Web3 sectors.
This announcement comes amid a broader market decline, with Ethereum experiencing severe sell-offs totaling over $353 million. Rumors circulated that Sun himself was forced to liquidate, but he clarified these claims, emphasizing his preference for staking, node operations, and providing liquidity over leveraged trading.
Despite this, Sun’s crypto holdings have faced significant unrealized losses of nearly $300 million. Since February 8, 2024, he has accumulated approximately 377,590 ETH, valued around $1.15 billion, across three wallets.
As the market undergoes a final correction before a potential major rally, expected later this year or early next, institutional interest in cryptocurrencies, including spot Ethereum and Bitcoin ETFs, continues to grow.
El Salvador’s President Nayib Bukele has also suggested that an impending Federal Reserve interest rate cut could boost Bitcoin’s recovery.
Coinbase CEO Brian Armstrong has spotlighted a significant acceleration in institutional crypto adoption, driven largely by the surging popularity of exchange-traded funds and increased use of Coinbase Prime among major corporations.
Jefferies chief market strategist David Zervos believes an upcoming power shift at the Federal Reserve could benefit U.S. equity markets.
Anchorage Digital, a federally chartered crypto custody bank, is urging its institutional clients to move away from major stablecoins like USDC, Agora USD (AUSD), and Usual USD (USD0), recommending instead a shift to the Global Dollar (USDG) — a stablecoin issued by Paxos and backed by a consortium that includes Anchorage itself.
Ethereum co-founder Vitalik Buterin has voiced concerns over the rise of zero-knowledge (ZK) digital identity projects, specifically warning that systems like World — formerly Worldcoin and backed by OpenAI’s Sam Altman — could undermine pseudonymity in the digital world.