Justin Sun, founder of Tron (TRX), has turned his attention to the Ethereum Ecosystem’s excessive leverage issues in posts from X accounts.
Justin Sun dealt with the issue of Ethereum leverage and called for proactive action.
Sun pointed out that excessive leverage should be controlled rather than waiting for crashes that could wreak havoc on Ethereum protocols and distributed finance (DEFI) projects.
He emphasized the need for early intervention and coordinated solutions.
Many investors are increasingly using leverage up to 50x (and sometimes 100x) when trading ETH on major platforms. This high leverage also leads to excessive liquidation risk if price volatility increases.
“In the short term, Ethereum needs to address widespread leverage issues.
“It would be better to intervene earlier, unlock some of the leverage and cause losses rather than wait for the protocol or Defi project to crash. A negotiated solution is recommended.”
In the short term, Ethereum also needs to address the widespread leverage issue. It would be better to intervene early and resolve some of the leverage rather than waiting for it to implode, causing losses to protocols and DeFi projects. A negotiated solution is recommended.
— H.E. Justin Sun 🍌 (@justinsuntron) March 11, 2025
*This is not investment advice.
