Justin Sun, the co-founder of Tron, reportedly withdrew 100 million USDT from the pool of the Aave Protocol V2. Interestingly, this same address bought $12.65 million worth of ETH at the bottom on June 17, when one ETH was worth $1,085.
Justin Sun is really smart money. pic.twitter.com/0NuXT6LoxR
— Lookonchain (@lookonchain) October 17, 2022
The Tron co-founder made the withdrawal in two separate batches of 50 million USDT each and swapped it to USDC. While his reason for changing to USDC might be unknown, the withdrawal is most likely linked to his recent case with Aave. Aave suspended Justin Sun’s address in August after 0.1 ETH was randomly sent to his address from Tornado Cash, a blacklisted cryptocurrency tumbler.
On the Ethereum network, numerous decentralized applications deployed code updates in August to deny access from addresses labelled as “sanctioned”. This follows the US Office of Foreign Assets Control (OFAC) decision to sanction all addresses that had interacted with the Tornado Cash platform that month.
Justin Sun’s address happened to be the same address that bought $12.65 million worth of ETH when it was as low as $1,085 in June, taking advantage of the crypto crash. The price of Ethereum has increased by about 22.33% since then. That is a massive $2.82 million profit for the Tron co-founder. Many claim that he has a time machine and that he made a smart move since the price of ETH will most likely increase even more soon because of the recent Ethereum merge.
Since the Ethereum merge about a month ago, the issuance rate of ETH has seen a massive reduction. While Ethereum is inherently inflationary, the merge has the potential to make it deflationary as more people flock to the network and ETH is more actively used as gas to execute transactions. Ether’s value rises as it gets rarer, which in turn boosts network security. The price of ETH is expected to rally in the coming weeks or months.