A particular cryptocurrency address believed to be associated with Justin Sun, the founder of Tron, was spotted in a large SHIB memecoin transaction. The withdrawal was carried out in two separate tranches, with 500 billion SHIB worth $5.1 million withdrawn on December 18, followed by another withdrawal of 70 billion SHIB (equivalent to approximately $900,000) on December 19. Interestingly, this particular address had not received SHIB tokens until now, despite being active for over two years.
Currently, the SHIB tokens still remain at the address and occupy the third position in terms of the overall volume of crypto assets stored there. The total value of funds in this address is estimated to be around $441 million, with the majority being staked in ether (stETH) amounting to $421 million, and assets locked in Aave (aEthUSDT) reaching $10 million.
The movement of funds from a crypto wallet associated with such an influential figure has sparked public controversy within the trading community. Some believe that the entrepreneur might be anticipating a significant change in the SHIB token’s value, hence accumulating tokens in preparation for a potential price movement. On the other hand, others suggest that the Tron founder intends to become more actively involved in the Shiba Inu ecosystem. A participant in the Shiba Inu ecosystem using the pseudonym Vet Kusama speculated that the withdrawal of SHIB tokens might be followed by a massive burning of them.
Dear @justinsuntron, today we noticed that you transferred approximately 500 billion #shib to your Justin Sun4 wallet. And this transfer took place for the first time (there has never been a shib transfer in your wallet before).
There are two possibilities:
1-) Shib burn
2-)… pic.twitter.com/O4JiLgcaUs— Vet KUSAMA ™ (@vetkusama) December 18, 2023
Following this news, there has been a 4% increase in the price of SHIB during the day, and it is currently trading at $0.00001047.
In a previous incident that occurred in August, Justin Sun withdrew $52.5 million worth of stablecoins from the AAVE lending platform. This had a direct impact on the platform’s liquidity and borrowing rates.