Justin Sun Moves Millions In ETH To Lido, Sparking Price Drop Concerns

Tron founder Justin Sun transferred 4,500 ETH (worth $6.96 million) from the Huobi exchange( a cryptocurrency exchange situated in the Seychelles) and staked it on the Lido platform.

In the last week, Sun applied to withdraw 80,251 ETH (worth $132 million) and transfer it to Lido, based on Crypto tracker, Lookonchain data. The cryptocurrency entrepreneur has already taken 43K ETH (worth $70 million) and deposited the tokens to Binance.

Separately, Sun staked 5,000 ETH (worth $7.87 million) into Lido.

“We need to learn from traditional finance,” said Justin Sun in an interview with CoinDesk that he conducted while in Paris for the Binance Blockchain Week conference. 

“We want our 100 million customers to know that we really take their money and their data seriously,” said Justin Sun.

Through its liquid staking solution, Lido offers an alternative to conventional PoS staking, significantly improving the liquidity of staked tokens and lowering the barrier to entry for its customers. 

This step concerned ETH whether Sun is underway to eliminate his complete ETH stake, which could lead to a sharp price drop in the token.

Lookonchain data shows that 1,000 ETH (worth $1.64 million) has been deposited on the crypto exchange Bitstamp. It is also tracking the movement of a crypto address associated with Ethereum co-creator and author Vitalik Buterin.

Of the total 137,325 ETH withdrawals by Sun in the past month, the Lido platform saw staking of 90,070 ETH (worth $146 million). This clearly marks Sun’s confidence in the value of staking assets on Lido.

In the past year, Ethereum prices have seen a 22.1% surge while its market cap dominance stands at 17.2%.

“Ethereum is hovering above a critical demand zone. Keep a close watch, as a daily close below $1,530 could signal a steep correction ahead for ETH,” said Crypto analyst Ali Martinez  in a tweet.

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Edited by Miriam Onyango and Newsdesk Manager