WLFI Hype, Suspicious Moves, and Sun’s Public Appeals: The Gift That Keeps on Giving

The WLFI launch this week was troubled by confusion and controversy, as retail investors, once again, bear the brunt of what many allege to be insider ￰0￱ froze Tron founder Justin Sun’s wallets after unusual transactions raised concerns of insider ￰1￱ is pressing the project to unfreeze his allocated ￰2￱ Liberty Financial Drama Continues On launch day, the community allocation, initially expected to be 5%, only saw 4% of tokens actually go live, as not everyone utilized the designated ￰3￱ co-founder Quinten Francois explained that liquidity and marketing, initially reported as 1.6%, actually accounted for 2.8% of the ￰4￱ brought the circulating supply effectively to 6.8%.

Meanwhile, other allocations, such as the 10% ecosystem fund and 7.8% reserved for Alt5 Sigma, weren’t truly ￰5￱ fact, Francois said that they were simply unlocked but not subject to vesting schedules, which created an illusion of available supply that complicated price ￰6￱ to the complexity, Justin Sun held 3% of WLFI’s total ￰7￱ 20% of his stake was technically unlocked at ￰8￱ publicly promised not to sell, saying that he supported World Liberty Financial’s long-term ￰9￱ token debuted at $0.20, with a $1 billion market cap, while trading volumes spiked into the billions, generating intense ￰10￱ this, WLFI’s price steadily declined, and the on-chain price action appeared suspiciously mechanical rather than driven by genuine community ￰11￱ suggested a likely scenario behind the ￰12￱ may have offloaded part of the 2.8% liquidity allocation, while Sun allegedly leveraged his connections with HTX, offering users 20% APY to deposit ￰13￱ setup would allow him to quietly sell his personal holdings while making it seem as if tokens were being staked by users, and even backfill user withdrawals with his own stack if ￰14￱ indicate Sun moved early $9 million worth of WLFI tokens through HTX and Binance from his addresses, activity tracked by Nansen, Bubblemaps, and Arkham Intelligence.

Ultimately, WLFI froze Sun’s wallet using the guardianSetBlacklistStatus function, following these suspicious ￰15￱ freeze fueled speculation that Sun used user deposits to liquidate his holdings, turning retail investors into exit liquidity. Sun’s Public Appeal A community member praised WLFI’s governance vote that froze Sun’s address, saying it at least temporarily blocks him from repeating prior patterns of alleged pumping and dumping tokens on retail investors. Meanwhile, Sun has publicly appealed to the World Liberty Financial team to restore ￰16￱ described the freezing of his tokens as “unreasonable” and stressed that, like other early investors, he “deserves the same rights.” In a bid to calm nerves and regain investor confidence, Sun also went into damage control mode and tweeted that he sees US-listed crypto stocks as “an undervalued opportunity.” He further pledged to personally buy another $10 million of WLFI.