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Justin Sun Wants to Save Bitcoin from the German Government, Here’s How
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Justin Sun, founder of the Tron network, has he made a proposal to negotiate with the German government on continuous sale of its huge Bitcoin reserve.
Justin Sun’s Motivation
According to Sun, his main motivation is to prevent the sell-off from having a negative impact on the broader market.
Germany’s Federal Criminal Police Office began selling off some of its confiscated Bitcoin proceeds in May. So far, the government has dumped over 9,641 BTC worth over $550 million on cryptocurrency exchanges in small batches.
While his Bitcoin holdings pale in comparison to the broader circulating supply, market sentiment toward this sell-off is somewhat erratic. Earlier today, German police moved 1,300 BTC to Kraken, Coinbase, and Bitstamp, a transfer that triggered a massive sell-off in the coin’s price.
At the time of writing, the price of Bitcoin has lost its edge. The coin is changing hands for $57,400.54, down 4.58% in the last 24 hours. This is the first time since mid-March that the price of Bitcoin has fallen to $57,000, a trend that does not speak well of the health of the network.
The way forward
It is not yet clear whether the German government will be open to discussing this with Justin Sun. With over 40,000 BTC left in its wallet, the government still has a considerable amount of Bitcoin to unload onto the market.
The market may become tough on the occasional government sell-off. This is a survival strategy, especially as more dumping will soon hit the market.
Like the German government, the United States government is also unloading his stashThis government sell-off could be complicated by expectations Mt. Gox Refund and likely sell-off. The market needs its innate resilience mechanism to handle the bearish days ahead, at least until Sun’s offer is accepted.
About the author
Godfrey Benjamin
Godfrey Benjamin is a cryptocurrency journalist whose main goal is to inform everyone around him about the prospects of Web 3.0. His love for cryptocurrency began when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. Due to his vast experience in covering various aspects of Web3, Godfrey’s articles have been published on Blockchain.news, Cryptonews, and Coingape, among others.