Justin Sun Effect: BitTorrent Token Price Follows TRON (TRX) in 16% Plunge
TRON (TRX) wasn’t the only cryptocurrency negatively affected by Tuesday’s news that Justin Sun is being sought by authorities on the Chinese mainland.
The other cryptocurrency in the TRON ecosystem, BitTorrent Token (BTT) followed TRX’s lead in a 16.8% plunge.
Justin Sun’s current whereabouts appears to be spreading fear throughout TRX and BTT holders. The news of China’s interest in Sun’s alleged criminal activities couldn’t have come at a worst time, as Bitcoin and the rest of the crypto market commenced another tumble.
Outfalling a Falling Market
TRX and BTT’s losses both outpaced the rest of the market on Tuesday. Bitcoin and company were already falling – and this chart showing a double-top formation suggests the trajectory for the immediate future is downward.
TRON eventually lost 22.9% of its value, as more news filtered through regarding Sun’s situation in China. Sun has already tried to bat away the notion that he’s under Chinese jurisdiction, affirming that TRON is registered in Singapore.
The report in 21st Century Business Herald stated Sun was under investigation for alleged illegal pornographic activities relating to his Peiwo app.
“The reporters of the 21st Century Business Herald have learned from many sources that Sun Yuchen is still in the territory. On the occasion of its cancellation of the appointment, there are still several questions to be answered: [his Peiwo app] is suspected of pornographic transactions; the Tron project is mainly based on gambling applications, and domestic users can directly access it.”
The news has since been reported by China’s largest newspaper, Sina, adding an air of legitimacy to the whole affair.
This is yet another chapter in Justin Sun’s Big Book of Gaffes, but more worryingly for TRX holders, it could also be the final chapter.
BitTorrent Token Follows TRON
The value of BitTorrent Token sunk 16.9% in the fallout. That carried BTT from a price of $0.001000, down to $0.000832.
All of this leaves BTT down 55% since its all-time high 2 months ago on May 28th. BTT was listed against TRX on Huobi Global earlier this week, and it was from Huobi’s board that Chris Lee was handpicked by Justin Sun to join him at the Buffet dinner just hours before the big cancellation.
Update: In the last few minutes Justin Sun posted a photo of himself near the Bay Bridge in San Francisco (accompanied by a bodyguard).
— Justin Sun (@justinsuntron) July 23, 2019
If Sun really is outwith China at this point, then he’s off the hook for now. Judging from the livestream he posted to his Twitter feed, the mysterious kidney stones don’t seem to be bothering him too much. Perhaps meeting Warren Buffet while you’re on China’s most wanted list was too much for the TRON frontman.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Charts via CoinMarketCap.