Tron founder has sent almost $600 million to the centralized exchange, but here’s why users should not be worried
- What’s behind the transactions?
- Could transactions affect Ethereum’s market performance?
Tron founder Justin Sun has deposited more than 165,000 Ethereum coins on the Binance exchange since the beginning of December, according to on-chain data provided by WuBlockchain.
What’s behind the transactions?
While it might seem that the founder of Tron was selling large Ethereum sums for his own good, it is not likely to be the case. According to the next post shared by Colin Wu, the transactions were made from internal deployment wallets that are not being used to make any profits.
Data on the chain shows that Justin Sun, the founder of TRON, has frequently deposited ETH into Binance since December, with a total deposit of approximately 165,989 ETH (592 million U.S. dollars). pic.twitter.com/8xKyf8Q72b
— Wu Blockchain (@WuBlockchain) December 29, 2021
Sun has also added that he remains highly optimistic about the entire blockchain industry and is going to continue to work in favor of it to create a better ecosystem and development framework in the future.
The market’s attention was attracted due to a large transaction made in favor of a Binance wallet. The wallet address ending in “ff5296” has moved approximately $600 million to another anonymous address that then later transacted funds to the centralized exchange.
Could transactions affect Ethereum’s market performance?
While the transacted amount of Ether could be considered significant, it has still only made up less than 20% of the average trading volume for the second biggest coin on the crypto market.
According to market data provided by TradingView, Ethereum has lost 22% of its value compared to the ATH reached back in November. After a strong correction, Ether has been steadily going down by losing 10% per week approximately.
At press time, ETH trades at $3,713 after spiking down by 8%, following the majority of coins on the market. Bitcoin, XRP and Dogecoin have also plunged down, with an average 8% loss in the last three days.