WLFI Jumps 8% as Justin Sun’s Entire Allocation Frozen – $400M Gained

World Liberty Financial’s governance token, WLFI, rose 8% on Tuesday, adding around $400 million to its market capitalization after project leaders froze the holdings of crypto entrepreneur Justin ￰2￱ move locked up nearly 3 billion tokens, drastically altering the token’s liquidity profile just days after its volatile ￰3￱ Price Rebounds Above $0.18 After Blacklisting Justin Sun’s Wallet According to the project, Sun’s wallet address was blacklisted , freezing 540 million unlocked WLFI tokens valued at about $101 million and 2.4 billion staked tokens worth approximately $452 ￰4￱ total, the freeze applied to 2.94 billion tokens.) September 1, 2025 On-chain movements also revealed transactions between his wallets and HTX, an exchange he is associated ￰5￱ activities fueled accusations of market manipulation, though Sun rejected ￰6￱ a statement, he argued that his addresses only conducted “generic exchange deposit tests with very low amounts” and denied that any activity could have influenced WLFI’s price.

Nevertheless, the blacklisting of his wallet marked a major escalation in the dispute. 我们的地址只是笼统地做了几笔交易所充值测试，金额非常低，然后做了一个地址分散，没有涉及任何买卖，不可能对市场产生任何影响。 — ￰7￱ Sun (Astronaut Version) (@justinsuntron) September 4, 2025 WLFI’s official account attempted to calm concerns, clarifying that tokens in project-controlled wallets are governed by community votes rather than the team’s ￰8￱ group emphasized that allocations can only be deployed through on-chain proposals approved by ￰9￱ freeze has also raised questions about investor ￰10￱ noted that if HTX sold WLFI deposits while Sun’s tokens are now illiquid, users seeking to reclaim their assets may need to repurchase them on the open ￰11￱ controversy capped a turbulent opening for ￰12￱ to launch, derivatives trading linked to the token spiked, with Coinglass reporting a 530% increase in 24-hour trading volume to $3.95 ￰13￱ interest surged over 60% to $931.9 million as traders speculated on the Trump-linked ￰14￱ the time spot trading began, WLFI briefly touched a fully diluted valuation near $40 billion, placing it within the top 50 cryptocurrencies.

However, sustained selling quickly drove the price ￰15￱ September 2, WLFI was trading at $0.24 with a market cap just below $7 ￰16￱ to CoinGecko , the token has since fallen to around $0.18, representing a 41.7% decline from launch and an 18.8% drop over the past 24 ￰17￱ the market turbulence, WLFI’s team maintains that its governance framework will allow the community to steer future ￰18￱ Burns 47M Tokens as Price Falls, Whales Absorb Heavy Losses World Liberty Financial burned 47 million tokens in its first week of trading , attempting to stabilize a market shaken by steep losses. On-chain data shows the tokens, equal to 0.19% of the circulating supply, were sent to a verified burn address on ￰19￱ move followed a sharp 31% drop from WLFI’s launch price of $0.33 to just over $0.23.

The team has also proposed a broader buyback-and-burn program, to be funded by protocol fees and subject to a community ￰20￱ Trump family’s wealth ballooned by $6B after $WLFI , their flagship crypto token, made its debut on major exchanges and opened for trading. #TrumpFamily #WLFI ￰0￱ — ￰21￱ (@cryptonews) September 2, 2025 WLFI’s debut resembled a public listing, opening spot trading for the first time after a July investor ￰22￱ volumes topped $1 billion in the first hour across Binance and other ￰23￱ briefly touched $0.30, valuing the Trump family’s nearly 25% stake at more than $6 ￰24￱ paper fortune has since shrunk as WLFI’s value plunged 41% in less than a ￰25￱ have borne the brunt of the ￰26￱ data shows wallet 0x432 lost over $1.6 million after reentering WLFI on leverage, erasing a $915,000 profit made just hours ￰27￱ are reeling from steep losses after a sharp selloff in World Liberty Financial (WLFI), a token linked to the Trump family. #Whale #Trump ￰1￱ — ￰28￱ (@cryptonews) September 4, 2025 Another large holder, wallet 854RaR, was down $650,000 on a $2 million position, while wallet 0x1527 faced over $2.2 million in unrealized ￰29￱ traders have profited from the sell-off, including wallet 0x92bb, which gained $1.8 million on a ￰30￱ burn failed to reverse ￰31￱ dropped an additional 18% in 24 hours after the announcement, with bearish sentiment ￰32￱ argue the strategy may ease short-term pressure but shows the fragility of celebrity-driven crypto ￰33￱ WLFI attempts to shift from hype to utility, investor confidence remains shaky, and whales are left counting heavy losses.