According to an extensive review of the associated wallet address, it was discovered that Justin Sun is a functional trader in the Decentralized Finance (DeFi) ecosystem, partaking in a series of staking activities from which he earns regular rewards. As a platform that supports staking, part of the reason for moving the funds to Poloniex might be to also stake it there as he has a of doing this.
Another plausible reason is to cushion liquidity on the Poloniex exchange. With Justin Sun’s direct oversight on the trading platform, ensuring there is enough liquidity to fulfill all customers’ orders is essential, and this funds movement can be directed to this purpose.
This is because the total sum of the funds might not make a dent in the Ethereum market, which boasts a market capitalization of over $224 billion. Should Justin Sun choose to sell off the quoted ETH tokens, the impact on the market may not be as grievous as is being projected.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
