An Expert Predicts that WLFI Will Fall to $0 Without Sun's Support, Seller Panic is Approaching

The World Liberty Financial platform launched its native token WLFI with great expectations in the crypto market, especially due to the backstop of the Trump fam. However, just one day after its debut, the price plummeted, generating intense speculation about its main investors, particularly Justin Sun, founder of Tron.

Alleged Manipulation by Justin Sun

Market expert Quinten Francois analyzed the launch of WLFI, which initially traded at $0.20, reaching a market capitalization of $1 billion. Despite the initial excitement that generated billions in trading volume, the value of the token continued to decline.

The curious thing is that this drop occurred while the community seemed to cling to their tokens instead of selling them. Francois speculated that some exchanges might have liquidated part of their holdings, estimated at 2.8%.

Accusations have emerged that Justin Sun used questionable tactics by channeling WLFI through his exchange. He allegedly offered users an annual return of 20% for depositing WLFI, allowing him to offload a significant portion of his own holdings under the guise of user staking.

The allegations suggest that this maneuver not only allowed him to benefit personally, but also intended to cover any withdrawals or sales with his own tokens, further complicating the returns for retail investors.

As Bitcoinist reported on Thursday, Sun's alleged manipulation led to the freezing of his wallet address. As a result, concern is growing among experts that WLFI could end up falling to zero.

Could the Price of WLFI Plummet to Zero?

In a recent social media post, the user OxPunisher detailed the manipulation patterns associated with Sun, referring to his history of questionable operations between 2018 and 2020, which allegedly resulted in $31 million in illicit profits.

This saga continued in 2024, when Sun withdrew $732 million in Bitcoin from the USDD backstop, and by the end of 2024, invested $30 million in WLFI just as the SEC paused its case, raising alarms among investors.

The narrative surrounding WLFI seems precarious at best. The expert claims that without Justin Sun's liquidity strategies, the token's value could collapse.

Furthermore, without the backstop of high-profile figures like President Donald Trump, the narrative that initially attracted investors could lose all its momentum.

This situation has led OxPunisher to believe that all of this could result in panic selling and a shift towards safer investment options by the investors of the platform, which could further increase the massive selling of WLFI and the downward trend seen in recent days.