Over the past 24 hours, Tron creator Justin Sun has urged the team behind the Trump-affiliated crypto project, WLFI, to unlock his tokens after his wallets got blacklisted due to suspicious transfers to exchanges that signaled intentions to sell.
The WLFI team blacklisted Sun’s wallets on September 4, after Arkham, a top platform for tracking on-chain activity, reported that the wallets had moved $9 million worth of tokens to exchanges.
Sun, who bought WLFI tokens worth $75 million via a presale a few months ago, claims that his holdings were frozen for no good reason and wants the developers behind the project to unfreeze them, in respect to the core principles of blockchain. He adds that the decision to lock his WLFI tokens violates investor rights and could damage confidence in the Trump-linked project.
Sun Promises to Hold His WLFI Tokens and Support the Project
It is worth highlighting that Sun has seen his wallet get blacklisted even after promising on X that he would not sell his holdings anytime soon. On Thursday, he said that he planned to hold his WLFI and even create a yield-earning program for the token on his exchange, HTX. Moreover, he promised to mint $200 million worth of USD1 on Tron in an effort to power the project.
Despite these promises, some analysts are still convinced that Sun has been selling his WLFI allocation, contributing to the token’s sudden crash, from an all-time high of $0.32 to $0.18 as of this writing. According to analysts from Bubblemaps, the Tron founder has moved $10 million in WLFI tokens to various exchanges and possibly dumped them.
Nansen CEO Defends Sun
However, Nansen CEO Alex Svanevik has refuted claims that Sun has been dumping his WLFI and that he is behind the crash. Using his company’s AI agent, Svanevik found out that at the time a huge bearish move happened on the WLFI’s price chart, Sun had not transferred his tokens to exchanges.
The AI agent identified a wallet address ending in “0x0a791e” as the real culprit. That wallet transferred WLFI worth $40 million to Binance, OKX, and Bybit. About 30 minutes after the transactions, WLFI’s price dropped 5.1%.
