Justin Sun, the founder of TRON (TRX), a crypto project focused on offering smart contract utility, has invested a massive amount of money in Ethereum-based decentralized finance (DeFi) projects. The underwater investment information was shared on Twitter by Igor Igamberdiev, a research analyst at The Block.
Justin Sun ignores Tron-based DeFi protocols
According to Igamberdiev, Sun changed to a new address after exposing the previous one for Big Data Protocol (BDP) farming. The data shared on Twitter shows that he has invested more than $1.6 billion in Ethereum-based DeFi projects.
It appears that one of Sun’s addresses had once made a transaction that made up 25% of the Big Data Protocol volume. Data from The Block research showed that Sun had roughly 661,000 WETH, about 229 million USDT, nearly 162 USDC, and 150 WBTC.
Igamberdiev says that “this amount of money in a fresh farm with a dubious use case raises certain concerns.” Additionally, it raises many questions why founder of TRON is not supporting projects on his TRON Blockchain and invests in DeFi. It is also likely that such large volume holding is geared toward pumping and dumping; in the end, it hurts smallholders of the tokens.
At the time of publication, TRON is trading at $0.05 amid a gradual recovery from the price fall in February. Support at the 200 Simple Moving Average (SMA) played a key role in the rebound. However, TRX has not sliced through the hurdle at $0.055, delaying the uptrend.
The least resistance path is upwards at the time of writing, supported by the Moving Average Convergence Divergence (MACD). Moreover, holding above $0.05 would allow bulls to focus on breaking the hurdle at $0.055.
Note that the longer bulls take to break the resistance at $0.055, the stronger the selling pressure becomes. In other words, overhead pressure will increase toward the immediate support at $0.05. On the downside, other support levels to keep in mind are the 50 SMA and the 200 SMA.