The launch of the World Liberty Monetary platform’s native token, WLFI, was anticipated as a big occasion within the cryptocurrency market, particularly with backing from the Trump household.
Nevertheless, only a day after its debut, the token’s value plummeted, sparking intense hypothesis relating to its main buyers, significantly Justin Solar, the founding father of the Tron blockchain.
Alleged Manipulation By Justin Solar
Market knowledgeable Quinten Francois offered insights into the WLFI launch, which initially priced at $0.20, reaching a market capitalization of $1 billion. Regardless of the joy surrounding the launch, which generated billions in buying and selling quantity, the token’s worth continued to say no.
Curiously, this downturn occurred even because the group appeared to carry onto their tokens quite than promote them. Francois speculated that exchanges may need offloaded a part of their holdings, estimated at 2.8%.
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Allegations have surfaced that Justin Solar engaged in doubtful ways by channeling WLFI by his change, HTX. He reportedly provided customers a 20% annual share yield (APY) for depositing WLFI, permitting him to dump a good portion of his personal holdings beneath the guise of person staking.
Allegations recommend that this maneuver not solely enabled him to revenue from the scenario but additionally that he meant to cowl any withdrawals or sell-offs along with his personal tokens, additional complicating retail buyers’ returns.
As Bitcoinist reported on Thursday, Solar’s alleged manipulation led to the freezing of his pockets handle. Consequently, there’s rising concern amongst specialists that WLFI may in the end face a trajectory towards zero.
May The WLFI Value Plummet To Zero?
In a latest social media put up, person OxPunisher outlined the patterns of manipulation related to Solar, referencing his historical past of questionable trades between 2018 and 2020, which reportedly resulted in $31 million in illicit income.
This ongoing saga continued into 2024, when Solar withdrew $732 million value of Bitcoin from USDD collateral, and in late 2024, he invested $30 million into WLFI simply because the SEC paused his case, additional elevating alarms amongst buyers.
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The narrative surrounding WLFI seems precarious at finest. The knowledgeable asserts that with out Justin Solar’s liquidity methods the token’s worth may collapse.
Furthermore, with out the backing of high-profile figures like President Donald Trump, the narrative that originally attracted buyers could lose its momentum completely.
This example has led OxPunisher to imagine that this example can lead to panic promoting and a shift towards safer funding choices by the platform’s buyers, which may additional enhance the WLFI’s sell-off and downtrend seen previously few days.
Featured picture from DALL-E, chart from TradingView.com
