U.Today – Justin Sun, founder of the Tron network, has made a proposal to negotiate with the German government on the continued sale of its huge reserve.
Justin Sun's motivation
According to Sun, his main motivation is to avoid the negative impact of the sale on the broader market.
Germany's Federal Criminal Police Office has started selling off some of the profits from bitcoin transactions it seized in May. So far, the government has sold over 9,641 BTC worth over $550 million in small amounts on cryptocurrency exchanges.
While their Bitcoin holdings pale in comparison to the broader circulating supply, market sentiment in the face of this sell-off is quite erratic. Earlier today, German police transferred 1,000,000 Bitcoin to Kraken, Coinbase (NASDAQ:) and Bitstamp, a transfer that triggered a sell-off in the coin’s price.
At the time of writing, the Bitcoin price has lost its edge. The coin is trading at $57,400.54, down 4.58% over the past 24 hours. This is the first time since mid-March that the Bitcoin price is trading at as low as $57,000, a trend that does not speak well of the health of the network.
The way to follow
It is unclear whether the German government will be willing to discuss this with Justin Sun. With over 40,000 BTC remaining in its wallet, the government still has a considerable amount of Bitcoin to sell on the market.
The market may be hardened by occasional government sales. This is a survival strategy, especially since more stock purchases will soon be taking place on the market.
Like the German government, the US government is also dumping its reserves. This government liquidation could be complicated by the expected repayment of Mt. Gox and the likely liquidation. The market needs its built-in resilience mechanism to handle the bearish days ahead, at least until Sun’s offer is accepted.
This article was originally published on U.Today
