Justin Sun Just Moved $14.7m in ETH – Is He Snapping Up More Meme Coin SPONGE V2 After Its Price Skyrocketed 178%?
Analysis of wallets associated with the high-profile crypto entrepreneur suggests that tokens like $SPONGE, which has just embarked upon an upgrade to transform it into a games platform, will be in his sights.
Savvy crypto market participants are turning to meme coins because it is a sector that has established itself as the arena of choice for traders seeking eye-watering returns on investment.
Justin Sun made it known back in May 2023 that he was looking to buy up attractive meme coins. He posted on X in May that he was going to start “trading meme coins and promising projects”. Sun owns $43,000 worth of $SPONGE.
I've decided to begin actively trading meme coins and promising projects through my public address. Please note, I will personally bear all potential losses from these trades, and any profits made will be donated entirely to charity.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 11, 2023
Now crypto watchers have spotted Sun making a huge move, in line with similar transactions by other whales readying for the next crypto bull run.
Which Meme Coins Might Justin Sun Be Buying?
New meme coins such as BONK, GROK and WIF have all been in the limelight of late, so could Justin Sun be freeing up funds to buy one or all of those coins?
Or perhaps he thinks this is a great time to be adding to some of his existing meme coin positions? With that thought in mind, $SPONGE could be at the top of his list.
According to data from crypto security firm PeckShield, a transfer of 6,166 ETH went from the Binance exchange to a wallet thought to be associated with Justin Sun. At current prices, the ETH transfer is valued at $14.7 million.
Transfers out of exchanges are often interpreted as indicative of hodling activity. But in this case the transfer could indicate that the owner of the ETH is looking to use them to buy ultra-low cap meme coins that are not listed on Binance.
#PeckShieldAlert The address 0x9FCc…19Fe (Suspicious #JustinSun related) has withdrawn 6,166 $ETH (worth ~$13.8M) from #Binance pic.twitter.com/8jGbcwRvzg
— PeckShieldAlert (@PeckShieldAlert) December 26, 2023
The wallet address – 0x9fcc67d7db763787bb1c7f3bc7f34d3c548c19fe – holds crypto valued at $273 million, most of which is in ETH. Just a small fraction of that amount could buy up coins at a scale that could move prices drastically, depending on the market depth of particular trading pairs.
But that’s not the only wallet address thought to be connected to Justin Sun. A second identifiable crypto wallet carries the public name tag ‘Justin Sun’ on Etherscan: 0x3ddfa8ec3052539b6c9549f12cea2c295cff5296.
The wallet is valued at $21.6 million.
Yet another wallet address (0x176f3dab24a159341c0509bb36b833e7fdd0a132), this time tagged as ‘Justin Sun 4’ on Etherscan holds crypto to the value of $530 million , and this is where SPONGE is held. Justin Sun holds 108 million SPONGE V1 valued at $43,246.
Other top meme coins include SHIB ($6.2m), (FLOKI ($805k), BabyDoge ($524k) and PEPE ($76k).
It is noteworthy that the top holding by value is Shiba Inu, suggestive of an intention to build an overweight position in the meme coin sector. The wallet holds 577 billion SHIB.
Head over to DeBank to see the full token portfolio:
Justin Sun Sees Chance For A 100x Gain With SPONGE V2
$SPONGE, created as a homage to the Spongebob cartoon character but not connected with Nickelodeon, was launched in May 2023 and quickly ran up a price gain of nearly 100x for ICO buyers. The coin has a market cap of $10 million and at least 11,800 token holders (excluding centralized exchanges where data is not available) and a solid social footprint, with 24,000-plus followers on X.
Earlier this month the project announced a new version 2 of the token. Existing holders of $SPONGE can stake to earn V2 by heading over to the V2 dashboard and start earning yield. $SPONGE holders who are already staking their V1 tokens need to unstake and then restake via the new V2 dashboard.
New buyers can simply purchase $SPONGE using the widget on the $SPONGE website and then stake to earn V2.
In order to get the V2 token the V1 token must be staked. As part of the bridging process the V1 token will be locked and the bridging to V2 will take place behind the scenes. After the bridging is complete token holders will be able to claim their tokens. Once claimed, tokens can remain on stake to continue earning yield.
The upgrade provides a welcome second bite of the cherry for the likes of Justin Sun to grab those 100x returns again. New Tier 1 exchange listings are also promised by the Sponge team, alongside the pivot into the fast-growing gaming sector.
Meme coins such as $SPONGE hold out the opportunity of bagging for investors gains in the thousands of percent. Returns from bitcoin will pale by comparison, despite the incoming mega bull run expected when the US Securities and Exchange Commission approves a spot Bitcoin ETF, expected early in January.
$SPONGE Price Soared 178% In 7 Days – And V2 Bridging Will Drive It Higher
The $SPONGE price is surging. Although the token has retreated from its all-time high above $0.0012 to currently trade at $0.00040, the probability of it ‘killing a zero’ are high on the back of its project roadmap news flow.
Over the past week alone $SPONGE has increased in price by 178% as FOMO induced by the version upgrade, as well as the broader rotation into meme coins, is fuelling speculative buying.
$SPONGE price chart, courtesy DEXTools
However, speculative inflows should not be misinterpreted as hot money that will only be around for the short-term. Justin Sun, for example, has been holding onto his $SPONGE. Indeed, astute investors should keep an eye on the wallet holding his $SPONGE to see when he stakes to earn V2.
Justin Sun is currently the 14th-largest holder of $SPONGE. If he decides to add to his holding of 108 million tokens ahead of the bridge to SPONGE V2, then it will likely be highly price-impactful, as a look at the market depth as reported by coinmarketcap shows.
To move the price by 2% requires a trade in the mere hundreds of dollars. A purchase of say $50,000 worth of $SPONGE could send the price to the moon, to use crypto parlance.
The article at the time commented:
“Two meme-coin projects, one based on the amphibian Pepe and the other on SpongeBob, are currently enjoying a major speculative boom, both acting like it’s 2021 again. The demand is so wild that meme coins like these did $2.3 billion in volume last week.”
Carefully selected investment in coins at the beginning of what could be the mother of all crypto bull runs could deliver life-changing returns. At times like this it pays to do in-depth research and due diligence to identify a spread of tokens and to spend some time on balancing existing portfolios.
The rotation from Bitcoin into ETH is one sign of the rebalancing and general portfolio rejigs taking place across the crypto space, as is the renewed interest in coins such as Solana, once thought to be on its last legs due to its association with Sam Bankman-Fried’s failed FTX exchange.
In addition to high- and mid-cap altcoins, low-cap meme coins should feature in a crypto investor’s portfolio. Some of these will be highly speculative short-term holds while others, such as SPONGE and PEPE might be longer-term plays because of a combination of their brand power and market positioning regards utility offering.
As mentioned earlier, $SPONGE will also be launching on “bigger and better exchanges” according to its website, making it an even more tempting buy for outsized returns. The token can already be bought on major centralized exchanges such as Gate, MEXC, Bitget and Poloniex.
Buy and stake $SPONGE today and it could set up crypto portfolios for spectacular alpha returns.
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