WLFI Jumps 8% as Justin Sun’s Entire Allocation Frozen – $400M
0Justin Sun
Trump
WLFI
By freezing over $550M of its advisor Justin Sun's assets, the WLFI project indicated that it would protect the token's value even from its most powerful insiders, turning a crisis of confidence into a price rebound.
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Hassan Shittu
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Hassan Shittu
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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...
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13 hours ago
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 Sun.
The move locked up nearly 3 billion tokens, drastically altering the token’s liquidity profile just days after its volatile launch.
WLFI 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 million. In total, the freeze applied to 2.94 billion tokens.
The decision followed allegations that an exchange systematically sold user deposits in a way that pressured the market. Core project leaders and several major exchanges were reportedly involved in the decision-making process.
The freeze immediately tightened the circulating supply, curbing potential selling pressure and boosting the price back above $0.18. The surge provided temporary relief for investors after a bruising launch that saw insiders offload nearly 700 million tokens within hours of trading opening.
World Liberty Financial debuted its token on September 1, initially priced at $0.46. Within two hours, heavy selling on Binance, OKX, and Gate drove the price down to $0.25.
Early backers, who had purchased tokens in presale rounds at $0.015 and $0.05, exited with gains of up to 20 times their investment, while retail investors absorbed losses.
The token’s economics have drawn criticism. Roughly 56% of the supply was controlled by insiders, while entities linked to the Trump family retained 22.5 billion tokens alongside rights to 75% of the project’s revenues.
Despite being marketed as a decentralized Trump-backed initiative, critics said the structure pointed to centralization.
Sun became involved earlier this year, investing $75 million and later being named an advisor. Data from Arkham Intelligence showed that he recently claimed $178 million worth of unlocked WLFI, giving him total holdings of nearly $900 million before the freeze.
On-chain movements also revealed transactions between his wallets and HTX, an exchange he is associated with. These activities fueled accusations of market manipulation, though Sun rejected them.
In 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.
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 discretion.
The group emphasized that allocations can only be deployed through on-chain proposals approved by holders. The...
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