Justin Sun pledges to create $1b fund to ‘combat FUD’ after facing $280m in losses

TRON founder Justin Sun appears unfazed by his nearly $300 million loss, despite pledging to donate $1 billion to combat FUD.

Justin Sun, founder of the TRON ecosystem, has announced the creation of a $1 billion fund in an effort to “combat FUD” after suffering significant losses due to recent market turbulence. Sun reassured his followers in an X post on August 5 that the industry has “grown significantly over the past year and this market volatility is not due to negative news.”

“We must reject FUD and continue to build. That’s why we are creating a $1 billion fund to combat FUD, drive more investment and provide liquidity.”

Justin Gunes

This commitment comes after a report by X account Spot on Chain revealed that Sun suffered a loss of approximately $280 million due to Ethereum’s recent 20% price drop.

Since February, Sun has reportedly accumulated over 377,500 (ETH) via three wallets at an estimated cost of $1.15 billion. With the price of Ethereum currently trading well below its average purchase price of $3,051, Sun’s holdings have lost significant value, the account stated.

“We rarely trade with leverage”

During the market downturn, reports emerged that Sun had been liquidated. The TRON founder denied the rumors, adding that his affiliates “rarely engage in leveraged trading strategies because they believe such transactions do not provide significant benefit to the industry.”

“Instead, we prefer to engage in activities that provide more support to the industry and entrepreneurs, such as staking, running nodes, working on projects, and helping project teams provide liquidity.”

Justin Gunes

This isn’t the first time Sun has made headline-grabbing announcements. Earlier in July, when the German government began liquidating thousands of confiscated Bitcoin (BTC), Sun publicly announced his “willingness” to negotiate a direct buyout to reduce his market influence. Despite his promise, Bitcoin’s price has fallen below $55,000, and it remains unclear whether Sun has spoken to German authorities about the matter.