- World Liberty blocked TRON DAO wallet after Justin Sun moved millions in WLFI fueling panic as token plunged with shaken investor trust.
- WLFI fell from $0.32 to $0.186 despite a 47M token burn showing how supply cuts and buyback talks have not calmed bearish sentiment.
- Justin Sun denied dumping WLFI but his links to TRON and Trump’s memecoin add pressure as investors watch governance risks unfold.
World Liberty Financial took drastic action this week by blacklisting the TRON DAO wallet on its WLFI token contract. The wallet, linked to Justin Sun, had purchased 3 billion WLFI during the project’s ICO.
Eight hours before the freeze, it unlocked 600 million tokens and moved 54 million WLFI worth about $11 million. The move sparked rumors that Sun sold tokens on HTX exchange, fueling a sharp decline in WLFI’s price.
The project’s decision locked the remaining WLFI in the TRON DAO wallet, preventing any further transfers. According to Spot on Chain, Sun shifted nearly $9 million worth of WLFI before the blacklist. Prices had already started sliding, and WLFI plunged as much as 24% in a single session.
Justin Sun’s Defense and Token Impact
Justin Sun responded on X, claiming his address only ran small exchange deposit tests and dispersed funds across wallets. He denied any large-scale selling that could influence WLFI’s market performance. Despite his defense, the backlash added pressure to an already struggling token.
WLFI launched trading earlier this week at $0.32 but quickly plunged to $0.21. As of now, it trades at $0.186, with a massive 24-hour trading volume of $1.84 billion. Investor sentiment remains shaky, with WLFI ranking among the ten most bearish tokens on CoinMarketCap.
Measures to Stabilize WLFI
World Liberty has introduced emergency measures to restore market confidence. On Wednesday, the project burned 47 million tokens to reduce circulating supply. However, WLFI’s total supply still sits near 99.95 billion.
Besides, the team has discussed a buyback program funded through protocol fees. All repurchased tokens would then be burned, creating a deflationary push.
Despite Sun’s advisory role and $75 million investment in WLFI, the token’s sharp swings highlight deep concerns. Moreover, his ties to Trump’s memecoin and earlier commitments add further scrutiny to the fallout.
WLFI’s crisis highlights how governance risks and whale actions can destabilize DeFi projects. Restoring trust now remains the project’s toughest challenge.
