TRON founder Justin Sun has recently announced plans to purchase $20 million worth of WLFI tokens following a conflict related to the freezing of his wallet. This statement has become a topic of discussion within the crypto community.
Wallet Freeze and Emergent Drama
The conflict began when WLFI blocked Justin Sun's wallet after transferring $9 million worth of WLFI tokens to his HTX exchange. The freeze covered 540 million unlocked and 2.4 billion locked tokens, worth over $3 billion.
This move surprised the crypto community, as Sun had already invested $75 million in WLFI's token sale, making him one of the largest supporters of the project. WLFI leaders provided no official reason for the freeze, but on-chain data revealed that Sun was moving tokens to exchanges soon after WLFI was listed on Binance, raising suspicions among some. Critics accused him of contributing to WLFI’s steep decline.
Justin Sun's Response to Allegations
Sun, who is set to embark on a space journey, dismissed the allegations as unreasonable. He explained that the transfers were small test deposits and distributions, not sales that would impact the market.
To demonstrate his commitment, he announced plans for a market buy of $10 million in WLFI tokens. He also pledged $10 million in ALTS shares, whose Nasdaq-listed ticker is associated with Alt5 Sigma, which manages WLFI's $1.5 billion treasury strategy. In his post on X, Sun tagged the Trump family directly and reiterated his long-term belief in WLFI.
The crypto community remains divided on Sun's latest move. Supporters see the $20 million pledge as proof of his belief in WLFI's future. Critics argue it is a calculated attempt to rehabilitate his reputation after being blacklisted by the project.
WLFI Token Price Challenges
WLFI is still under heavy selling pressure, even after removing $47 million worth of tokens from circulation. The token has dropped 40% in value since launch, falling from an $8.6 billion debut to about $0.18.
Many investors are now cautious and question why the project would freeze the wallet of one of its biggest backers. Experts say this kind of move is rare in decentralized finance (DeFi) and could scare off both small and large investors.
WLFI first gained significant attention because of its ties to U.S. President Donald Trump. One of Trump's companies received 22.5 billion WLFI tokens, increasing his reported wealth by over $4 billion.
The token launch initially generated excitement, but that hype has now been replaced by price volatility and conflicts like the one with Sun. As prices tumble, early enthusiasm has given way to hard questions about governance and sustainability.
Justin Sun's actions highlight his determination to stay involved with WLFI despite public fallout and the controversies surrounding his persona.
