Justin Sun Claims $200M WLFI, TRX Dips on Trump Crypto Ties
Tron founder Justin Sun has unlocked 20% of his WLFI holdings, releasing nearly $200 million into circulation and raising his total WLFI stake to $891.2 million. TRX experienced renewed volatility, dropping 1.8% to $0.3364, amid Sun’s deepening ties to Donald Trump’s crypto ventures. Sun, Trump’s business partner, said he won’t sell his WLFI stake soon and plans to boost WLFI stablecoin USD1 circulation on the Tron blockchain to $200 million. Sun’s prior $30 million investment made him WLFI’s largest backer, alongside hefty stakes in the Official Trump memecoin (TRUMP). These moves, coupled with a whale-led sell-off that recorded $1.4 billion in realized TRX profits in a single day, signal potential capital shifts away from Tron’s ecosystem. The combination of unlocked tokens and profit-taking by long-term whales could exert short-term bearish pressure on TRX, while Sun’s commitments may support market stability over the longer term.
Bearish
The news is bearish for TRX because unlocking $200 million in WLFI tokens increases circulating supply, while Justin Sun’s shift of capital towards Trump-backed projects hints at reduced focus on the Tron ecosystem. Coupled with a recent whale sell-off that generated $1.4 billion in realized TRX profits, market pressure is mounting. Historically, large token unlocks and whale profit-taking—such as those seen during 2021–22 bull runs—have led to short-term price declines as additional supply hits the market and early investors cash out. In the short term, TRX may face downward pressure from these unlocked WLFI tokens and ongoing whale distributions. Over the long term, Sun’s pledge not to sell immediately and his commitment to expand WLFI stablecoin circulation could provide support, but overall trader sentiment remains cautious until signs of renewed buying emerge.