After World Liberty Financial froze the Wallet of one of its main supporters, Tron founder Justin Sun, the price of WLFI Token experienced significant Fluctuation. On-chain data showed that before WLFI took blacklist action, Justin Sun's Wallet had conducted millions of dollars in Token transfers. Although Justin Sun claimed these were just routine "exchange deposit tests" and denied any dumping behavior, market observers and analysts accused him of trying to "pump and dump" on retail investors. This incident raised concerns about the project's centralized control and the influence of large holders on the market. Technically, WLFI is striving to break through the 20-H EMA resistance level, and its future trend remains highly uncertain.
WLFI Freezes Justin Sun's Wallet: Market Reaction and On-Chain Evidence
The price of WLFI Token fell to $0.161 on Friday after experiencing a brief rebound of 12.5%, following rumors that World Liberty Financial may have frozen the tokens of one of its biggest supporters—Tron founder Justin Sun.
On-chain data shows that on Thursday, World Liberty Financial blacklisted a wallet address associated with Justin Sun, preventing the transfer of approximately 595 million unlocked WLFI Tokens in that address. This move came after a series of outflow transactions from the wallet, including a transfer worth about 9 million dollars.
On-chain data analysis platforms such as Arkham Intelligence and Onchain Lens have confirmed that the blacklisted address belongs to Justin Sun. According to Arkham's data, before WLFI took blacklist action, Justin Sun had transferred $9 million worth of WLFI to another address. The marked activities include multiple transfers from Justin Sun's Wallet, as well as deposits to a certain CEX. Onchain Lens reported that Justin Sun transferred 50 million WLFI, worth $9.12 million, to a new Wallet, with analysts believing that these Tokens may flow to a CEX closely associated with Justin Sun.
( Justin Sun denies "dumping": Analysts accuse him of "pump and dump"
In response to the allegations, Justin Sun denied any market impact, stating that these transactions were merely routine tests and address diversification. He insisted that no actual buying or selling occurred and emphasized that such small transfers could not influence the WLFI market. He called for WLFI to unlock its tokens, arguing that freezing investors' assets goes against the principles of fairness and transparency.
However, market observers are skeptical, believing that Justin Sun is trying to sell his WLFI holdings to retail investors. Analyst Star Platinum pointed out that the frozen WLFI address used by Justin Sun was involved in cross-chain looping, transferring funds between Ethereum and BSC while repeatedly borrowing and selling stablecoins. This analyst believes that Justin Sun controls an ecosystem worth $38 billion, with his exchange handling 17% of the global trading volume, making him a "single point of failure" in many markets. Star Platinum believes that this freeze has only delayed Justin Sun's usual Pump and Dump tactics.
) Technical Outlook: WLFI Price Movement and Key Resistance
The negative impact surrounding this event, combined with retail investor allegations of insider selling, may suppress the price increase momentum of the WLFI token. As reported earlier by FxEmpire, World Liberty Financial is replicating another "Trump Family Token" — TRUMP — which experienced a 90% crash, potentially further dampening investor interest.
As of Friday, WLFI is still struggling to close near its 20-hour exponential moving average (20-H EMA) around $0.184. Continued pressure from this short-term resistance level increases the likelihood of WLFI dropping toward its local low of $0.161, which nearly aligns with the 1.618 Fibonacci retracement level. On the other hand, if it can close above the 20-H EMA, the price may move toward the 1.00 Fibonacci level around $0.200, which nearly coincides with this week's 50-H EMA. Before making any bullish bets above $0.200, traders need more fundamental and technical confirmation.
( WLFI Project Background and Regulatory Challenges
According to Arkham's data, Justin Sun currently controls approximately 595 million WLFI, valued at 107 million USD based on the current market value. This balance represents his unlocked allocation, accounting for about 20% of his total holdings. Based on his initial purchase and unlocking terms, approximately 2.4 billion WLFI remain locked.
It is uncommon to see the wallets of high-profile industry figures placed on a blacklist, indicating that World Liberty Financial intends to maintain control over its token ecosystem as WLFI trading volume continues to grow. It is worth mentioning that the WLFI token has recently been listed on a leading CEX, broadening market access. According to TradingView data, WLFI dropped over 16% in just one day, falling to $0.1835, but the decline is less than 9% compared to the beginning of the week, suggesting that market attention to Justin Sun's actions and the blacklist announcement is relatively low. In a brief attempt to recover after hours, WLFI briefly rose back to around $0.19, but sellers quickly regained control.
Conclusion:
The incident of WLFI freezing Justin Sun's Wallet is a complex case in the cryptocurrency market, intertwining various issues such as the ideal of decentralization versus the reality of centralized control, the influence of large investors against the emotions of retail investors, and accusations of market manipulation alongside on-chain transparency. Although Justin Sun denies dumping, the on-chain data and allegations from analysts undoubtedly bring significant uncertainty to WLFI. This blacklist event also serves as a reminder to investors that even projects claiming to be decentralized may have developers who retain powerful control sufficient to influence the market. With challenges on both the fundamental and technical fronts, WLFI's short-term prospects will depend on how the market digests this incident and the battle between bulls and bears at key price levels.
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WLFI freezes "money man" Justin Sun's Wallet, causing severe price Fluctuation: deposit test or Pump and Dump?
After World Liberty Financial froze the Wallet of one of its main supporters, Tron founder Justin Sun, the price of WLFI Token experienced significant Fluctuation. On-chain data showed that before WLFI took blacklist action, Justin Sun's Wallet had conducted millions of dollars in Token transfers. Although Justin Sun claimed these were just routine "exchange deposit tests" and denied any dumping behavior, market observers and analysts accused him of trying to "pump and dump" on retail investors. This incident raised concerns about the project's centralized control and the influence of large holders on the market. Technically, WLFI is striving to break through the 20-H EMA resistance level, and its future trend remains highly uncertain.
WLFI Freezes Justin Sun's Wallet: Market Reaction and On-Chain Evidence
The price of WLFI Token fell to $0.161 on Friday after experiencing a brief rebound of 12.5%, following rumors that World Liberty Financial may have frozen the tokens of one of its biggest supporters—Tron founder Justin Sun.
On-chain data shows that on Thursday, World Liberty Financial blacklisted a wallet address associated with Justin Sun, preventing the transfer of approximately 595 million unlocked WLFI Tokens in that address. This move came after a series of outflow transactions from the wallet, including a transfer worth about 9 million dollars.
On-chain data analysis platforms such as Arkham Intelligence and Onchain Lens have confirmed that the blacklisted address belongs to Justin Sun. According to Arkham's data, before WLFI took blacklist action, Justin Sun had transferred $9 million worth of WLFI to another address. The marked activities include multiple transfers from Justin Sun's Wallet, as well as deposits to a certain CEX. Onchain Lens reported that Justin Sun transferred 50 million WLFI, worth $9.12 million, to a new Wallet, with analysts believing that these Tokens may flow to a CEX closely associated with Justin Sun.
( Justin Sun denies "dumping": Analysts accuse him of "pump and dump"
In response to the allegations, Justin Sun denied any market impact, stating that these transactions were merely routine tests and address diversification. He insisted that no actual buying or selling occurred and emphasized that such small transfers could not influence the WLFI market. He called for WLFI to unlock its tokens, arguing that freezing investors' assets goes against the principles of fairness and transparency.
However, market observers are skeptical, believing that Justin Sun is trying to sell his WLFI holdings to retail investors. Analyst Star Platinum pointed out that the frozen WLFI address used by Justin Sun was involved in cross-chain looping, transferring funds between Ethereum and BSC while repeatedly borrowing and selling stablecoins. This analyst believes that Justin Sun controls an ecosystem worth $38 billion, with his exchange handling 17% of the global trading volume, making him a "single point of failure" in many markets. Star Platinum believes that this freeze has only delayed Justin Sun's usual Pump and Dump tactics.
) Technical Outlook: WLFI Price Movement and Key Resistance
The negative impact surrounding this event, combined with retail investor allegations of insider selling, may suppress the price increase momentum of the WLFI token. As reported earlier by FxEmpire, World Liberty Financial is replicating another "Trump Family Token" — TRUMP — which experienced a 90% crash, potentially further dampening investor interest.
![WLFI Price Analysis]###https://img-cdn.gateio.im/webp-social/moments-87a9b3933a-9cf2488c87-153d09-6d2ef1.webp###
(Source: TradingView)
As of Friday, WLFI is still struggling to close near its 20-hour exponential moving average (20-H EMA) around $0.184. Continued pressure from this short-term resistance level increases the likelihood of WLFI dropping toward its local low of $0.161, which nearly aligns with the 1.618 Fibonacci retracement level. On the other hand, if it can close above the 20-H EMA, the price may move toward the 1.00 Fibonacci level around $0.200, which nearly coincides with this week's 50-H EMA. Before making any bullish bets above $0.200, traders need more fundamental and technical confirmation.
( WLFI Project Background and Regulatory Challenges
According to Arkham's data, Justin Sun currently controls approximately 595 million WLFI, valued at 107 million USD based on the current market value. This balance represents his unlocked allocation, accounting for about 20% of his total holdings. Based on his initial purchase and unlocking terms, approximately 2.4 billion WLFI remain locked.
It is uncommon to see the wallets of high-profile industry figures placed on a blacklist, indicating that World Liberty Financial intends to maintain control over its token ecosystem as WLFI trading volume continues to grow. It is worth mentioning that the WLFI token has recently been listed on a leading CEX, broadening market access. According to TradingView data, WLFI dropped over 16% in just one day, falling to $0.1835, but the decline is less than 9% compared to the beginning of the week, suggesting that market attention to Justin Sun's actions and the blacklist announcement is relatively low. In a brief attempt to recover after hours, WLFI briefly rose back to around $0.19, but sellers quickly regained control.
Conclusion:
The incident of WLFI freezing Justin Sun's Wallet is a complex case in the cryptocurrency market, intertwining various issues such as the ideal of decentralization versus the reality of centralized control, the influence of large investors against the emotions of retail investors, and accusations of market manipulation alongside on-chain transparency. Although Justin Sun denies dumping, the on-chain data and allegations from analysts undoubtedly bring significant uncertainty to WLFI. This blacklist event also serves as a reminder to investors that even projects claiming to be decentralized may have developers who retain powerful control sufficient to influence the market. With challenges on both the fundamental and technical fronts, WLFI's short-term prospects will depend on how the market digests this incident and the battle between bulls and bears at key price levels.