Justin Sun has maintained a reputation as one of the biggest whales in the broader Bitcoin (BTC) and altcoin world. While his strides remain documented, a series of fresh trades uncovered by CryptoQuant Founder Ki Young Ju might dent his reputation.
Earlier media reports have it that HTX reserve displayed some suspicious trends. Following this revelation, Ki Young Ju made a move to dig into what is ongoing.
Coming back with his report on X, he alleges that the previously referenced whale linked to the HTX reserve is Justin Sun. He went further to state that Sun placed a long trade on Bitcoin when the price was $67,000. From his investigation, he projected that Sun’s total position comes in at $420 million.
This HTX whale was Justin Sun.
He opened a long #Bitcoin at $67K with at least $420M in positions. Their $USDT reserve is around $24M. Where did all the collateral come from?
He used $460M worth of $stUSDT. It’s his stablecoin project with 46% APY. 89% of the supply is in HTX. https://t.co/oSqGQbLw1q pic.twitter.com/icqaMsLHU1
— Ki Young Ju (@ki_young_ju) July 11, 2024
While similar trades linked to Sun are not uncommon, the challenge is that the HTX liquidity comes in at only $24 million. This suspicious trend does not end there, Sun allegedly propped the Bitcoin trade with $460 million worth of stUSDT.
Related risky bets based on borrowed collateral have posed questionable trends in the crypto ecosystem before now. Recall that Curve Finance co-founder Michael Egorov suffered sever CRV liquidations few weeks back. With the price of Bitcoin maintaining $57,864, the risk of unannounced liquidation is high.
However, the stUSDT is confirmed to be a stablecoin linked to Justin Sun. While Young Ju did not directly allege market manipulation practices, he did ask where the collateral backed the Bitcoin bets came from. This, he showcased might be hard to detect. This is because 89% of the stUSDT supply is locked on HTX.
Risky bets are not uncommon in the industry or with Justin Sun. As reported earlier, the Tron Founder recently bought $5 million worth of Ethereum ahead of ETF approvals.
As a prominent figure in the industry, his trades are often under heavy scrutiny. While Ki Young Ju has tagged on-chain Sleuth ZachXBT to join the investigation, Justin Sun has chosen to keep mute on the Bitcoin trades for now.
Until any damning claims are presented, what many remember might be the push to launch a gas-free stablecoin solution he announced barely a week ago.
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