The launch of the World Liberty Financial platform’s native token, WLFI, was anticipated as a significant event in the cryptocurrency market, especially with backing from the Trump family.
However, just a day after its debut, the token’s price plummeted, sparking intense speculation regarding its major investors, particularly Justin Sun, the founder of the Tron blockchain.
Interestingly, this downturn occurred even as the community seemed to hold onto their tokens rather than sell them. Francois speculated that exchanges might have offloaded part of their holdings, estimated at 2.8%.
Allegations suggest that this maneuver not only enabled him to profit from the situation but also that he intended to cover any withdrawals or sell-offs with his own tokens, further complicating retail investors’ returns.
This ongoing saga continued into 2024, when Sun withdrew $732 million worth of Bitcoin from USDD collateral, and in late 2024, he invested $30 million into WLFI just as the SEC paused his case, further raising alarms among investors.
Moreover, without the backing of high-profile figures like President Donald Trump, the narrative that initially attracted investors may lose its momentum entirely.
This situation has led OxPunisher to believe that this situation can result in panic selling and a shift toward safer investment options by the platform’s investors, which could further increase the WLFI’s sell-off and downtrend seen in the past few days.
Featured image from DALL-E, chart from TradingView.com
