FUD Alert: Justin Sun Didn’t Cash Out $1.2 Billion of Tron Coins
The unlikely claims that a wallet selling huge quantities of TRX belonged to Justin Sun, the founder of Tron, caused panic in the Tron community. The recently discovered Ethereum wallet has sold over 6 billion Tron TRX coins to different exchanges in the past 20 days. These coins, which total 10% of the circulating supply, are worth $1.2 billion at the current TRX price of approx. 0.2USD. Tron investors were worried that Justin may have been cashing out early, potentially indicating that the Tron project is a scam. This is not that case though, as Justin has confirmed on Twitter. The account actually belongs to a Tron private investor/market maker. The people that are still repeating these rumours are likely just trying to spread fear, uncertainty, and doubt so that they can exploit inexperienced investors and load up on cheap Tron coins prior to upcoming partnership announcements.
Why do people think it’s Justin Sun?
The people claiming that this wallet belongs to Justin Sun are using two pieces of information to link it to him:
1. The owner has sold over 6 billion TRX
Justin has confirmed that the owner of the account had a large amount of TRX because they are actually a private Tron investor that assists in maintaining market liquidity. They were able to acquire a large amount of TRX during Tron’s private offering period, where they invited large investors to purchase up to 15% (15 billion) of all Tron coins. Additionally, the investor did not necessarily purchase 6 billion TRX directly from Tron, or have 6 billion TRX in their wallet at any one time. By examining the wallet, it can be seen that while the owner does sell TRX to exchanges, they are also constantly buying it. This makes sense, as constantly buying and selling TRX would make it always available on exchanges, therefore increasing the liquidity.
2. The wallet is linked to an account on CryptoKitties called “justinpets”
“justinpets”, the name of the CryptoKitties account associated with the wallet, was confirmed by Justin Sun to be merely an unfortunate coincidence. The private investor just so happens to have the same name as the Tron founder and used it when registering a CryptoKitties account.
Finally, to see for yourself that none of the Tron developers have cashed out, the wallet which holds their TRX is publically viewable. This wallet contains 35% of all TRX (35 billion), the amount which Tron said they would set aside in their whitepaper. By looking at this wallet, you can see that none of the coins have been moved since they arrived. In fact, the Tron Foundation couldn’t access these funds even if they did want to cash out, as Justin Sun has publicly stated that these coins are locked until 2020. So you can guarantee that everyone working at Tron will be trying their best to improve the project in the meantime!
You can rest easy knowing that your Tron investment isn’t going to become worthless overnight. The people working on the Tron project are dedicated to making it the best they can so that their TRX is worth something in two years when they can sell it. This actually means that now is the best time to invest in Tron; it has at least two years of solid growth ahead of it and it’s only going to get more valuable. If you don’t have any Tron TRX yet, follow this guide to get started!