Tron founder Justin Sun proposed to buy all Bitcoins held by the German government to reduce market chaos, be a good person and save the world? What is his intention?

Justin Sun wants to buy Germany’s BTC over the counter

Tron founder Justin Sun has made a startling proposal. He intends to buy all the Bitcoin held by the German government over the counter. His goal is to minimize market disruption.

The development follows the transfer of 6,500 Bitcoins from a German government wallet on June 19. The amount, valued at more than $425 million, has raised concerns among traders about potential market turmoil.

The wallet in question is believed to be linked to funds seized by the German Federal Police from the pirated movie website Movie2k in 2013. The steady issuance of Bitcoins to exchanges has exacerbated already volatile market conditions.

Is Justin Sun grandstanding or saving the world?

On Thursday, the value of Bitcoin dropped to $56,770 after the German government transferred another 1,300 Bitcoins, worth nearly $75 million, to three exchanges: Kraken, Coinbase, and Bitstamp. In the past 15 days, they have sold nearly 9,641 BTC, leaving about 40,360 BTC.

Although a BKA spokesperson confirmed that the criminal unit does not hold the seized Bitcoin, Sun's offer is still high. He wrote on Twitter:

"I am willing to negotiate with the German government to purchase all BTC over-the-counter to minimize the impact on the market."

Experts believe that the German government should choose an auction or over-the-counter transaction. According to Bitfinex analysts, the impact of moving such a large amount of Bitcoin to exchanges on the market is equivalent to selling more than $450 million on the spot market. They explained:

"By moving Bitcoin to exchanges, even if the amount sold is about $70 million, the impact is equivalent to selling more than $450 million on the spot market if the estimated cumulative spot volume increment based on aggregated data from major exchanges is considered. Combined with the liquidation of long positions in the perpetual contract market, these factors together have a greater impact on the market than the actual sales that the German government is considering."

The German government’s handling of its Bitcoin sales has been criticized for causing unnecessary market turmoil. Tron founder Justin Sun’s statement is not known at this time. Perhaps he really bought all the Bitcoin held by the German government over the counter to reduce market chaos. But whether he really took action remains in doubt.