Blockchain entrepreneur Justin Sun, best known as the founder of Tron, has become the largest investor in Ethereum, with over 282,796 ETH committed. This figure, in dollar terms, stands at an astonishing $439 million. Sun pledged two separate addresses on the Ethereum 2.0 staking platform, Lido. This move not only emphasizes his substantial investment in the Ethereum ecosystem but also indicates a remarkable faith in Lido’s staking capabilities.
Moreover, data from Lookonnchain reveals that on October 12, Sun moved 4,500 ETH, worth around $6.96 million, from the Huobi exchange to stake it on Lido. Additionally, he recently initiated the withdrawal of 80,251 ETH, approximately valued at $132 million, to transfer to the Lido platform. Sun also has another 43,000 ETH, or roughly $70 million, currently deposited on the Binance platform. These moves collectively confirm his expanding footprint in the Ethereum domain.
Lido’s staking solutions and the market response
Lido offers a liquid staking solution, diverging from traditional Proof of Stake (PoS) systems by enhancing the liquidity of staked tokens. Consequently, this makes staking more accessible and appealing to the broader public. This approach by Lido has been drawing attention and even sparked speculation about Sun’s long-term plans for his ETH holdings.
The staking pattern also coincides with notable trading volume spikes on Sun’s crypto exchanges, Huobi and Poloniex. Specifically, trading volume on Poloniex soared to an extraordinary $20 billion in August 2023. This rise is intriguing, especially in light of Huobi’s recent rebranding as HTX (Huobi Tron Exchange). The rebranding resonates with similarities to the now-dissolved FTX exchange.
Amid this backdrop, Justin Sun seems to be increasingly influencing the Ethereum ecosystem. Lookonchain indicated that 90,070 ETH, worth around $146 million, was staked on Lido from Sun’s accounts in the past month. Hence, Justin Sun’s extensive investments underscore his confidence in the Lido platform and its unique staking solutions.
Interestingly, this development occurs at a time when Justin Sun and his ventures face ongoing scrutiny. In March 2023, the Securities and Exchange Commission (SEC) charged Sun with several violations. These include the unregistered sale of crypto assets and engaging in questionable trading practices.
Although it remains unconfirmed whether the trading volume spikes are directly connected to these allegations, Sun’s expansive Ethereum investments suggest he remains a major player in the crypto landscape, unfazed by the regulatory challenges he currently confronts.
With multiple financial maneuvers, Sun seems committed to reinforcing his position as a significant stakeholder in Ethereum.
