TRON founder Justin Sun has come under scrutiny after his wallet was blacklisted by World Liberty Financial following the transfer of $9 million in WLFI tokens.
Reasons for Blacklisting
The reasons behind World Liberty Financial's decision to blacklist Sun's wallet remain unclear. However, it has fueled speculation that the company is attempting to prevent early sellers from negatively impacting token prices during the initial trading week.
Justin Sun's Response
Sun, a key investor in WLFI, responded to the blacklisting on social media, stating that the transfer was merely a routine exchange test and not a market-moving event. He emphasized, "Our address only carried out a few general exchange deposit tests with very small amounts, so it could not possibly have any impact on the market."
WLFI Price Dynamics
WLFI made its public debut on several major crypto exchanges, including Binance and KuCoin. Although it initially surged in value, the token has since experienced a decline of over 17%. In response, World Liberty Financial has burned 47 million WLFI tokens and proposed a buyback plan to stabilize prices.
The situation surrounding Justin Sun's blacklisted wallet and the decline in WLFI's price highlights the volatility of the cryptocurrency market and raises questions about asset management practices in new projects.
