CoinDesk reports:
Justin Sun is back with another ambitious proposal. The Tron founder has set his sights on Germany’s BTC reserves, boldly suggesting an off-market buyout to “minimize impact on the market.”
It all began on June 19 when the German government flagged suspicious transfers of 6,500 bitcoins, valued at over $425 million, sparking trader concerns about potential market turmoil.
Reportedly linked to funds seized from the Pirate Movie2k website in 2013, the steady release of BTC to exchanges exacerbated an already volatile market.
Can Sun Save the Day?
Arkham Intelligence labeled this wallet as “Germany Government (BKA),” becoming a focal point of concern for traders wary of its potential market impact.
On Thursday, after the German government transferred nearly 1,300 bitcoins worth around $75 million to Kraken, Coinbase, and Bitstamp, bitcoin plummeted again to $56,770. In just the past 15 days, they have sold nearly 9,641 BTC, retaining around 40,360 BTC.
While a BKA spokeswoman confirmed that the criminal unit does not hold the confiscated bitcoins, Sun’s attention-grabbing proposal is unlikely to be ignored. His tweet stated,
“I’m willing to negotiate with the German government to buy all BTC off-market to minimize market impact.”
It’s as if Sun is poised to play the cryptocurrency hero, swooping in one headline at a time to save the day.
Market Disturbances
Experts suggest that the German government’s anticipated sales are best executed through auction or off-market transactions.
In a statement to CryptoPotato, a Bitfinex analyst remarked that by choosing to move such a substantial amount of bitcoins to exchanges, the government created a market impact equivalent to selling over $450 million in the spot market.
“By moving bitcoins to exchanges, even with a sale amounting to around $70 million, considering the delta estimated based on aggregated data from major exchanges, the impact is akin to selling over $450 million in the spot market. Coupled with the unwinding of long positions in the perpetual market, this will generate a market impact greater than the actual sales amount considered by the German government.”