Justin Sun Embroiled in WLFI Token Controversy as Address Blacklisted Amid Selling Rumors
The cryptocurrency world is buzzing with fresh allegations surrounding Tron founder Justin Sun. World Liberty Financial (WLF) has reportedly blacklisted a crypto address linked to Sun, sparking a firestorm of speculation and claims of market manipulation following the movement of significant WLFI token holdings.
Allegations and On-Chain Movements Unveiled
On Thursday, World Liberty Financial reportedly added an address associated with Justin Sun to its blacklist. This action came amidst widespread accusations of market manipulation, prompted by Sun's recent movements of his WLFI token holdings. Sun, an early investor in WLF, had previously declared his conviction in the project, stating that WLFI "will be one of the biggest and most important projects in crypto" and affirming his long-term commitment with "no plans to sell our unlocked tokens anytime soon." However, on-chain data from Arkham suggests a different narrative. Sun, who acquired 600 million WLFI tokens valued at $200 million during the Token Generation Event (TGE), reportedly moved 4.9 million WLFI to the Tron Foundation-owned HTX crypto exchange over two days. Further analysis indicated another 50 million tokens, worth $9.12 million, were transferred to a new wallet, "likely to be deposited into HTX." In a related development, the HTX address "HTX 48" was observed transferring approximately 60 million WLFI to a Binance deposit address. In response, Sun dismissed these movements as mere "test deposits" to exchanges, denying any trading activities and asserting they were insignificant enough not to impact the market.
WLFI Token's Price Plunge and Expert Analysis
The unfolding controversy has had a palpable impact on the WLFI token's market performance. Just three days after its launch, the token experienced a sharp decline, hitting an all-time low of $0.16. While it saw a slight rebound to $0.18, this still represents a 20% drop within 24 hours and a substantial 45% decrease from its all-time high of $0.33. Crypto market analysts are closely monitoring the situation. Daan Crypto Trades noted that WLFI had broken down from a two-day triangle formation, experiencing a "quick acceleration" and a brief retest before continuing its downward trajectory. Analyst Ali Martinez further warned that if the token fails to hold the $0.20 support level, it could face an additional 25-50% decline. World Liberty Financial has yet to issue an official statement addressing the blacklisting or the ongoing market events.
