cryptocurrency

Justin Sun – Altruism or Greed?

Written by Marcus Sotirio, Analyst at the publicly listed digital asset broker GlobalBlock

Bitcoin is down about 5% over the past weekend, starting the week around $20,500 at the time of writing. The downtrend continues in the cryptocurrency market, due to growing fears of an upcoming recession. Google search volume from Recession It has risen in recent weeks.

The June jobs report, released last week, showed employment was solid with wage growth picking up, raising the chance of a recession. This is because it leads to a more aggressive Federal Reserve, which must fight to help reduce domestic inflation. Recession usually means that the P/E multiple (which is what investors are willing to pay for the stock, given its dividend) will be squeezed, leading to a potential drop in stock prices, thus affecting the cryptocurrency due to the currently high correlation.

Within the cryptocurrency ecosystem, concerns about the liquidity crunch have subsided. Justin SunThe founder of the TRON protocol, one of the largest blockchain networks, said he is ready to join Sam Bankman-Fried in providing financial support to crypto firms struggling with liquidity issues. Sun said he could spend up to $5 billion on acquisitions, after several companies reached out to him for help.

Sam Bankman-Fried’s FTX has already provided support to Voyager Digital and BlockFi, with the CEO of Binance CZ claiming that 50-100 crypto companies are seeking help, given that the exchange has “the largest cash reserve in the industry.” Sun claimed that a similar number had contacted TRON as well.

According to the TRON website, DAO has reserves of $2.3 billion. “Our interest is with platforms that have a large user base, both the CeFi and DeFi platforms,” Sun said. Sun said he believes the worst of the current market downturn is behind us. He claimed, “I currently think the de-leveraging process has gone through the worst of times, so we just need to clean it up and move on. I don’t think [the] The market is going to be very bullish of course.” The macroeconomic environment could mean that the liquidity crunch lasts longer, due to the Federal Reserve being forced to respond to persistently high inflation and continue to withdraw liquidity.

#Justin #Sun #Altruism #Greed

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