The launch of the World Liberty Financial platform’s native token, WLFI, was anticipated as a major occasion within the cryptocurrency market, particularly with backing from the Trump household.
However, only a day after its debut, the token’s worth plummeted, sparking intense hypothesis relating to its main traders, significantly Justin Sun, the founding father of the Tron blockchain.
Alleged Manipulation By Justin Sun
Market skilled Quinten Francois offered insights into the WLFI launch, which initially priced at $0.20, reaching a market capitalization of $1 billion. Despite the joy surrounding the launch, which generated billions in buying and selling quantity, the token’s worth continued to say no.
Interestingly, this downturn occurred even because the group appeared to carry onto their tokens reasonably than promote them. Francois speculated that exchanges might need offloaded a part of their holdings, estimated at 2.8%.
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Allegations have surfaced that Justin Sun engaged in doubtful ways by channeling WLFI by means of his change, HTX. He reportedly supplied customers a 20% annual proportion yield (APY) for depositing WLFI, permitting him to dump a good portion of his personal holdings below the guise of consumer staking.
Allegations recommend that this maneuver not solely enabled him to revenue from the state of affairs but in addition that he meant to cowl any withdrawals or sell-offs together with his personal tokens, additional complicating retail traders’ returns.
As Bitcoinist reported on Thursday, Sun’s alleged manipulation led to the freezing of his pockets deal with. As a outcome, there’s rising concern amongst consultants that WLFI may finally face a trajectory towards zero.
Could The WLFI Price Plummet To Zero?
In a current social media submit, consumer OxPunisher outlined the patterns of manipulation related to Sun, referencing his historical past of questionable trades between 2018 and 2020, which reportedly resulted in $31 million in illicit earnings.
This ongoing saga continued into 2024, when Sun withdrew $732 million price of Bitcoin from USDD collateral, and in late 2024, he invested $30 million into WLFI simply because the SEC paused his case, additional elevating alarms amongst traders.
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The narrative surrounding WLFI seems precarious at finest. The skilled asserts that with out Justin Sun’s liquidity methods the token’s worth may collapse.
Moreover, with out the backing of high-profile figures like President Donald Trump, the narrative that originally attracted traders could lose its momentum totally.
This state of affairs has led OxPunisher to imagine that this example can lead to panic promoting and a shift towards safer funding choices by the platform’s traders, which may additional enhance the WLFI’s sell-off and downtrend seen up to now few days.
Featured picture from DALL-E, chart from TradingView.com
