Justin Sun denies leveraged position opening

Today, the global risk investment market collapsed across the board. TSMC rarely hit the limit down, and the Japanese and Korean stock markets triggered the circuit breaker mechanism during the trading session. Bitcoin even fell below the 50,000 US dollar mark earlier, which can be said to be a dead body everywhere.

Social media reported that Justin Sun opened a long position at 67,000 US dollars and was liquidated
Against the background of the continuous collapse of the currency circle, the social media frequently reported that the huge Bitcoin position of Justin Sun (Sun Ge), the founder of TRON, was liquidated, which may be the reason for the large-scale spike.

The rumor originated from a tweet by CryptoQuant CEO Ki Young Ju on July 12 that Justin Sun opened a long position at the price of $67,000 in Bitcoin (the tweet was later deleted by him):

The real identity of the exchange HTX, which was heavily long on Bitcoin on June 9, is Justin Sun. He opened a long position in Bitcoin at a price of $67,000, holding $420 million, and used $460 million in stUSDT as collateral.

In response, Justin Sun also clarified to Ki Young Ju that the long order was not opened by him, and Ki Young Ju also posted a follow-up statement:

HTX has an open position of $515 million in BTC-USDT futures, which has increased fivefold in the past two months.

However, the exchange’s USDT reserves remain at around $24 million, which makes me wonder whether other collateral such as stUSDT is used. As of now, HTX has $460 million in $stUSDT. HTX has given an official answer to my inquiry.

HTX stated that stUSDT and aEthUSDT can be used equivalently within its platform. It seems that stUSDT or aEthUSDT is indeed used as collateral for futures transactions. Justin Sun expressed his frustration and said that he is not a trader.

It is likely that HTX customers opened futures positions after being able to freely use stUSDT and aEthUSDT. Although I am curious about who opened the futures positions, HTX refused to disclose this information due to customer privacy.

Sun Yuchen: Not liquidated, rarely leverage As Ki Young Ju’s message continues to spread, many netizens believe that Sun Ge was liquidated in today’s market crash. In response, Sun Yuchen tweeted again this afternoon to clarify:

The rumors about our positions being liquidated are wrong. We rarely use leveraged trading strategies because we believe that such transactions will not bring significant benefits to the industry.

Instead, we prefer to engage in activities that provide greater support to the industry and entrepreneurs, such as staking, running nodes, working on projects, helping project teams with liquidity, and providing total value locked (TVL) services.

However, netizens still don’t believe it, and some netizens left comments below saying: “Yes, you” have not been “liquidated”, “This sounds like something a liquidated person would say”, “Okay, okay… Brother Sun will never be liquidated.”

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…

— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 5, 2024