Tron founder Justin Sun has made headlines in the cryptocurrency world as he recently withdrew $29.7 million worth of Ether (ETH) from Lido Finance and transferred the funds to Huobi. The move has sparked speculation about Sun’s intentions and potential impact on Lido Finance.
Withdrawal and Transfer:
According to blockchain intelligence firm Arkham Intelligence, Sun requested unstaking his ETH tokens from Lido Finance on Wednesday and completed the transfer to Huobi on Thursday. The transaction involved unstaking 15,805 ETH from Sun’s Lido address and depositing 15,815 ETH into Huobi.
Rumors of a Sale:
News of the transfer fueled rumors of a potential sale by Sun. However, the founder has not commented on the transaction or revealed his intentions regarding the disposition of his Ether holdings.
Dismissing Crash Speculations:
Initially, there were speculations that Sun’s actions were an attempt to crash Lido Finance. However, it was later revealed that he still had a substantial amount of ETH, approximately 290,000 ETH worth nearly $546 million, staked in Lido.
Previous Involvement with Lido:
In February, Sun deposited 150,000 ETH into Lido Finance, contributing to the platform’s most significant 24-hour staking inflow. The deposit, valued at $240 million then, boosted Lido’s total value locked (TVL) for that day.
Lido’s Safety Measures:
In response to Sun’s substantial deposit, Lido activated its Staking Rate Limit as a protocol safety feature. This feature reduces the amount of stETH (staked ETH) that can be minted on the platform within a sliding 24-hour window, protecting against potential rewards dilution. Lido gradually balances this reduction on a block-by-block basis.
Past Controversies and SEC Charges:
Justin Sun has previously faced controversies and legal challenges. The United States Securities and Exchange Commission (SEC) charged Sun and his three wholly-owned companies with offering and selling crypto securities, including BitTorrent (BTT) and Tronix (TRX). The SEC also accused Sun of engaging in secondary market manipulation for TRX through wash trading and failing to disclose compensation to celebrities endorsing the tokens.
Justin Sun’s withdrawal of $29.7 million worth of ETH from Lido Finance and transfer to Huobi has attracted attention in the crypto community. Speculation about a potential sale surrounds the transaction, but Sun’s intentions remain undisclosed. As Sun navigates these developments, the cryptocurrency industry watches closely to see how his actions may impact Lido Finance and the broader market.
