Justin Sun’s WLFI Token Address Blacklisted
Justin Sun, the founder of Tron, saw his World Liberty Financial (WLFI) token address blacklisted on Thursday after a transfer of 50 million WLFI tokens to the Crypto Exchange HTX.
According to on-chain data from Nansen and Arkham, the blacklisting occurred shortly after this $9 million transaction. This action raised concerns that WLFI might be restricting certain users from selling their tokens during the initial week of public transactions, potentially affecting prices negatively.
On the same day, Sun addressed the speculation through a translated post, clarifying that he had only conducted some standard exchange deposit tests using a minor amount of WLFI tokens before setting up various addresses. He stressed that this activity wasn’t related to buying or selling and insisted, “it will not affect the market.”
The restrictions hinted at a continued commitment to the project, especially following Sun’s earlier comments that he “will not sell anytime soon.” He added, “We don’t plan to sell any unlocked tokens soon. The long-term vision is strong, and I align perfectly with my mission.”
A representative for Sun stated that he and the WLFI team are actively discussing the issue with Cointelegraph.
WLFI, a decentralized financial project that has backing from former President Donald Trump, began trading officially on Monday. Following a brief rise to about $0.32, the token’s value plummeted by 22% by Thursday, dropping to under $0.18.
Efforts to Stabilize WLFI’s Value
The falling value of WLFI has raised significant concerns within the World Liberty Financial team as they explore strategies to manage supply and bolster support for the token.
On Wednesday, the project reportedly burned 47 million tokens, according to on-chain data. This was a strategic move aimed at reducing the circulating supply and, ideally, increasing the value of the remaining tokens.
Despite these efforts, WLFI’s total supply still stands at around 99.5 billion.
The World Liberty team has also implemented buyback programs financed by protocol fees, with all tokens repurchased being consumed to further limit supply.
However, persistent price volatility and rising losses have shaken investor confidence. WLFI is now ranking among the ten weakest tokens in terms of investor sentiment.
