Justin Sun is back with another ambitious proposition. The Tron Founder has now set his sights on the German government’s BTC stash, boldly offering to buy it all off-market to “minimize the impact on the market.”
It all started with the German government-labeled wallet’s suspicious transfer of 6,500 BTC on June 19, worth more than $425 million, which sparked concerns among traders about potential market turbulence.
The wallet in question is believed to be linked to funds seized from the pirate movie website Movie2k by BKA back in 2013. The steady release of BTC to exchanges has further exacerbated the already turbulent market conditions.
Tron Founder to Save the Day?
Tagged by Arkham Intelligence as “German Government (BKA),” this wallet became a focal point for traders worried about its potential market impact.
Bitcoin took a fresh tumble to $56,770 on Thursday after the German government moved another 1,300 BTC, worth nearly $75 million, to three exchanges – Kraken, Coinbase, and Bitstamp. In the past 15 days alone, they have sold nearly 9,641 BTC, leaving them with nearly 40,360 BTC.
Despite a BKA spokeswoman confirming that the criminal unit does not hold the seized Bitcoin, Sun’s grandstanding offer is unlikely to go unnoticed. His tweet read,
“I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.”
It’s as if Sun is ready to play the crypto hero, swooping in to save the day – one headline at a time.
Market Disruption
Experts believe that the expected selling by the German Government would have been better executed through an auction or OTC.
In a statement to CryptoPotato, Bitfinex analysts said that by opting to move such a huge stash of Bitcoin to exchanges, the government created a market impact equivalent to over $450 million being sold on the spot market.
“By moving bitcoin to exchanges, even though the amount being sold is around $70 million, the impact is equivalent to over $450 million being sold on the spot market, if you consider estimated spot cumulative volume delta, based on aggregated data across major exchanges. Add to that the closing of long positions in the perpetual markets, this combines to create a much larger market impact than the actual sales being considered by the German government.”
