World Liberty Financial (WLFI), the newly launched decentralized finance (DeFi) platform backed by the Trump household, is dealing with important worth challenges following its WLFI token debut final Monday.
The platform has leveled critical accusations towards an unnamed crypto trade, claiming it has been manipulating consumer tokens to drive down costs. This scenario has drawn explicit consideration in direction of crypto billionaire and Tron founder Justin Sun.
World Liberty Financial Claims Manipulative Practices
After the WLFI token launched, its worth surged to a formidable $0.47 on September 1. However, the joy was short-lived, because the token subsequently plummeted to a weekly low of $0.18, reflecting a staggering 61% lower in worth.
World Liberty Financial has alleged that this decline is linked to manipulative practices by an trade, together with questionable actions from Justin Sun’s pockets, which has resulted in a major quantity of his fortune changing into inaccessible.
Notably, the platform has blacklisted Sun’s pockets, which incorporates $540 million price of unlocked WLFI tokens that at the moment are frozen, and a pair of.4 billion locked tokens that stay out of attain.
Sun Responds To Allegations
In response to the allegations, Justin Sun took to social media website X to refute the claims. He said that his handle had solely performed “minor trade deposit exams” with minimal quantities and had created handle dispersion with out participating in any shopping for or promoting actions, asserting that these actions couldn’t have influenced the WLFI worth.
The relationship between Justin Sun and World Liberty Financial dates again to November 2024, when Sun made a considerable funding of $30 million in WLFI tokens, making him the platform’s largest investor.
His help got here with reward for President Donald Trump’s imaginative and prescient of creating a brand new regulatory framework for digital property, a transfer that has seemingly fostered elevated curiosity in cryptocurrency adoption amongst main monetary entities on Wall Street.
Featured picture from DALL-E, chart from TradingView.com
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