Expert Warns WLFI Value Could Collapse Without Justin Sun’s Support
The launch of the World Liberty Financial platform's native token, WLFI, was marked by significant anticipation due to support from the Trump family. However, within a day, WLFI's price dropped sharply, raising concerns about major investors, particularly Justin Sun, founder of Tron.
Key Points
- WLFI debuted at $0.20 with a market cap of $1 billion.
- Despite high trading volume, WLFI's value continued to decline.
- Speculation suggests that exchanges may have sold part of their holdings (approximately 2.8%).
- Allegations against Justin Sun include manipulation through his exchange HTX, offering a 20% annual percentage yield for deposits to offload his own holdings.
- Concerns arise over his alleged tactics to cover withdrawals using his tokens, impacting retail investors' returns.
- Sun's wallet address has been frozen amid accusations of manipulation, leading to fears that WLFI's price could decrease to zero.
- Historical manipulation patterns linked to Sun raised alarms, including a $732 million Bitcoin withdrawal and a recent $30 million investment in WLFI.
- Experts suggest that without Sun's liquidity strategies, WLFI's value may collapse.
- The absence of backing from prominent figures like Donald Trump could further weaken investor interest.
- Panic selling is anticipated among investors, potentially accelerating WLFI's downward trend.