Key takeaways:
- Even while Justin Sun’s achievements are still recorded, a number of recent trades that CryptoQuant Founder Ki Young Ju discovered could damage his reputation.
- Similar transactions associated with Sun are not unusual, but the problem lies in the HTX liquidity, which is only $24 million.
One of the largest whales in the larger Bitcoin (BTC) and altcoin markets continues to be Justin Sun. Even while his achievements are still recorded, a number of recent trades that CryptoQuant Founder Ki Young Ju discovered could damage his reputation.
Previous reports from the media claim that HTX Reserve showed some unusual patterns. Ki Young Ju decided to investigate the matter further after learning of it.
In his report on X, he returns and claims that Justin Sun is the whale that was previously mentioned and connected to the HTX reserve. He proceeded to claim that at $67,000, Sun had entered into a long Bitcoin transaction. He calculated Sun’s overall stake to be $420 million based on his study.
Similar transactions associated with Sun are not unusual, but the problem lies in the HTX liquidity, which is only $24 million. There is more to this troubling pattern: Sun is accused of using $460 million in stUSDT to support the Bitcoin trade.
Prior to this, dubious patterns in the cryptocurrency ecosystem have been raised by similar risky investments made on borrowed collateral. Recall that Michael Egorov, a co-founder of Curve Finance, experienced severe CRV liquidations a few weeks ago. There is a significant chance of an unexpected liquidation while the price of Bitcoin remains at $57,864.
Still, it’s official that stUSDT is a stablecoin associated with Justin Sun. Young Ju questioned the source of the collateral used to support the Bitcoin bets, even if he refrained from accusing anyone of engaging in market manipulation. He illustrated how this could be difficult to notice. This is as a result of HTX holding 89% of the stUSDT supply.
In the industry, and with Justin Sun specifically, risky bets are not unusual. The Tron Founder recently purchased $5 million worth of Ethereum before to the approval of ETFs, as was previously reported.
Being a well-known person in the field, his transactions are frequently closely examined. Justin Sun has decided to remain silent on the Bitcoin trades for the time being, despite Ki Young Ju having tagged on-chain Sleuth ZachXBT to participate in the probe.
What many people will likely remember is his announcement just a week ago of his intention to provide a gas-free stablecoin solution, at least until any damaging claims are made public.
