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Tron’s Founder and former CEO, Justin Sun, has reportedly purchased $1 million worth of TerraUSD (USDT) through Curve Finance. The team at WuBlockchain captured Mr. Sun’s purchase through the following tweet.
Justin Sun said that he was buying UST, and data showed that his address starting with 0x8d7ea6a bought about 1 million UST on Curve. Justin Sun just launched USDD on TRON that imitates UST. https://t.co/bBc9z2jxr3
— Wu Blockchain (@WuBlockchain) May 8, 2022
Justin Sun May Have a ‘Secret Plan’ for UST
The purchase of UST by Justin Sun comes in the backdrop of an earlier Tweet where he announced he was buying the stablecoin. Terra’s Do Kwon responded to the Tweet, asking Mr. Sun what he was up to. Justin Sun responded, ‘I may have a secret plan.’
At the time of writing, Justin Sun has not elaborated on his plan for the purchased UST. However, crypto-twitter community members have offered the following possibilities.
- He will use it as a reserve for Tron’s stablecoin
- The funds will be committed to a UST-USDD pool
UST Had Depegged from the $1 Mark, Affecting the Value of Terra (LUNA)
Justin Sun’s purchase of $1 million comes in the wake of TerraUSD (UST) depegging due to a massive sale of the stablecoin in Curve Finance and Binance. UST has since regained a value closer to the $1 mark.
Additionally, the events of the last 48 or so hours have had a negative effect on the price of Terra (LUNA). The digital asset has suffered an 11.21% decline in value in the last 24 hours.
It is also trading below the critical 200-day moving average after setting a local low of $59.40 earlier today and due to news of TerraUSD (UST) depegging from its one-dollar mark.
Furthermore, Terra (LUNA) could continue to experience a bearish sentiment given that Bitcoin has lost its $34k support and looks destined to tap $32k either by tonight’s weekly close or sometime next week.
