Justin Sun Locks in $200M WLFI Tokens, Pledges Not to Sell
On September 1, the WLFI token underwent its Token Generation Event, releasing 20% of its 100 billion supply. Justin Sun claimed 600 million WLFI tokens worth about $200 million, representing 3% of the unlocked supply. Sun, founder of Tron (TRX), pledged not to sell any unlocked WLFI tokens, citing alignment with World Liberty Financial’s long-term vision. WLFI token trades at $0.2453 with a $6.05 billion market cap, down over 38% from its pre-launch high near $0.40. The project, endorsed by former President Donald Trump, recorded $2.57 billion in 24-hour volume. Despite strong speculation, WLFI token faces volatility and regulatory scrutiny. Traders should note the high volume and political backing when assessing risk.
Neutral
The news is classified as neutral because Justin Sun’s acquisition and lock-up of 600 million WLFI tokens supports short-term price stability, but the token’s 38% drop from its pre-launch peak and ongoing regulatory uncertainties temper bullish sentiment. Similar to past politically endorsed token launches, initial hype and high trading volume often lead to sharp volatility once tokens unlock. In the short term, Sun’s pledge may anchor WLFI token price; long-term market direction will depend on project execution, trading volume sustainability, and regulatory developments.