A wallet linked to Tron founder Justin Sun moved 41.99 million Spark (SPK) tokens worth roughly $1.23 million to the HTX exchange on May 18, renewing speculation about a sustained sell-off.
The transaction was first flagged by on-chain analyst ai_9684xtpa and relayed by ChainCatcher, according to market reports. The transfer resumed a pattern of large SPK movements from Sun-linked wallets to centralized exchanges after a roughly two-week pause.
Data shows the wallet has routed approximately 610 million SPK, with an estimated cumulative value of $19.08 million, to exchanges since September 2025. This history of consistent, large-scale transfers has led traders to view the flows as a significant supply overhang for the token.
For traders, the repeated deposits onto HTX signal a persistent risk of selling pressure, potentially capping the token's upside. Even without confirmation of an immediate sale, the availability of a large volume of tokens on an exchange is often enough to weigh on market sentiment, especially for an altcoin like Spark.
The core issue for SPK holders is the consistent offloading of tokens from a major insider. Rather than being held or used within the Spark protocol's ecosystem, the tokens are being moved to a venue for trading. This creates what traders call a supply overhang, where a large pool of potential sell orders can absorb incoming demand and stifle price rallies. The latest $1.23 million transfer adds to this pool, reminding the market of the nearly $19.08 million in cumulative transfers over the past eight months.
Beyond the immediate market impact, the pattern of withdrawals raises broader governance questions for the Spark protocol. The consistent monetization of staking rewards or ecosystem allocations by a figure as influential as Sun can erode confidence among smaller holders. It creates uncertainty about his long-term intentions and the degree of his influence over the project's assets. While Sun has previously characterized similar moves in other ecosystems as routine liquidity management, the market appears to be pricing in the risk of continued selling.
This article is for informational purposes only and does not constitute investment advice.
