Markets
Justin Sun wants to buy everything
Justin Sun is back with another ambitious proposal. The Tron founder has now set his sights on the German government’s BTC stash, boldly proposing to buy it all off-market to “minimize market impact.”
It all started with the suspicious transfer of 6,500 BTC, worth over $425 million, from the German government-tagged wallet on June 19, which raised concerns among traders about possible market turbulence.
The wallet in question is believed to be linked to funds seized from pirate movie site Movie2k by BKA in 2013. The steady release of BTC to exchanges has further exacerbated already turbulent market conditions.
Will Tron Founder Save the Day?
Tagged by Arkham Intelligence as “German Government (BKA),” the wallet has become a focal point for traders concerned about its potential impact on the market.
Bitcoin fell again to $56,770 on Thursday after the German government moved Another 1,300 BTC, worth nearly $75 million, was sold to three exchanges: Kraken, Coinbase, and Bitstamp. In the last 15 days alone, they sold nearly 9,641 BTC, leaving them with nearly 40,360 BTC.
Although a BKA spokeswoman confirmed that the crime unit does not hold the seized bitcoins, Sun’s grandiloquent offer is unlikely to go unnoticed. tweet read,
“I am ready to negotiate with the German government to buy all BTC off-market to minimize the impact on the market.”
It’s as if Sun is ready to play the role of crypto hero, stepping in to save the day – one stock at a time.
Market disruption
Experts believe that the sale expected by the German government would have been better carried out through an auction or an over-the-counter market.
In a statement to CryptoPotato, Bitfinex analysts said that by choosing to move such a large amount of Bitcoin to exchanges, the government has created a market impact equivalent to over $450 million sold on the spot market.
“By moving bitcoin to exchanges, even if the amount sold is around $70 million, the impact is equivalent to over $450 million sold on the spot market, if you consider the delta of the estimated cumulative spot volume, based on aggregated data on the major exchanges. Add to that the closing of long positions on the perpetual markets, and it creates a market impact far greater than the actual sales envisaged by the German government.”