World Liberty Financial (WLFI), the newly launched decentralized finance (DeFi) platform backed by the Trump family, is facing significant price challenges following its WLFI token debut last Monday.
The platform has leveled serious accusations against an unnamed crypto exchange, claiming it has been manipulating user tokens to drive down prices. This situation has drawn particular attention towards crypto billionaire and Tron founder Justin Sun.
World Liberty Financial Claims Manipulative Practices
After the WLFI token launched, its price surged to an impressive $0.47 on September 1. However, the excitement was short-lived, as the token subsequently plummeted to a weekly low of $0.18, reflecting a staggering 61% decrease in value.
World Liberty Financial has alleged that this decline is linked to manipulative practices by an exchange, along with questionable movements from Justin Sun’s wallet, which has resulted in a significant amount of his fortune becoming inaccessible.
Notably, the platform has blacklisted Sun’s wallet, which includes $540 million worth of unlocked WLFI tokens that are now frozen, and 2.4 billion locked tokens that remain out of reach.
Sun Responds To Allegations
In response to the allegations, Justin Sun took to social media site X to refute the claims. He stated that his address had only conducted “minor exchange deposit tests” with minimal amounts and had created address dispersion without engaging in any buying or selling activities, asserting that these actions could not have influenced the WLFI price.
The relationship between Justin Sun and World Liberty Financial dates back to November 2024, when Sun made a substantial investment of $30 million in WLFI tokens, making him the platform’s largest investor.
His support came with praise for President Donald Trump’s vision of establishing a new regulatory framework for digital assets, a move that has seemingly fostered increased interest in cryptocurrency adoption among major financial entities on Wall Street.
Featured image from DALL-E, chart from TradingView.com
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