- Justin Sun challenges WLFI over frozen tokens amid sharp price drop and investor concerns.
- WLFI token plunges over 50% in a week as market reacts to sell-off speculation and freezes.
- Sun urges transparency, fairness, and investor rights while ongoing talks with WLFI continue.
Tron founder Justin Sun has accused World Liberty Financial (WLF) of unfairly freezing his WLFI tokens after the project’s token experienced a decline. Sun, one of the early backers of the DeFi initiative tied to U.S. President Donald Trump’s family, said the freeze undermines fairness and investor rights at a critical moment for the project.
World Liberty Financial froze wallets connected to Sun following speculation that he was offloading large amounts of WLFI on exchanges. The move came days after WLFI began trading at $0.46, before falling 60% to $0.16 and later stabilized around $0.18 at the time of writing. Market data shows the token had lost more than half of its value in one week, cutting its market capitalization to about $5 billion.
According to data from Arkham Intelligence, the latest transfer handled 50 million WLFI worth a whopping $9 million. Critics within the crypto community linked the decline to investor concerns over token dumping and questioned Sun’s earlier promotion of WLFI’s tokenomics, which included a burn mechanism and a 20% annual yield plan.
Additionally, observers warned that freezing tokens in such a context could undermine the foundation of trust and transparency that blockchain technology is built on. Market watchers noted that if compromised, it raises doubts about how World Liberty Financial can maintain long-term confidence among its community and investors.
Sun’s Call for Transparency
Responding to the restrictions, Sun demanded that the Trump-led project unlock his tokens and restore what he described as “investors’ legitimate rights”. He emphasized that unilateral freezes risk reducing trust in World Liberty Financial’s network.
Related: Trump-linked WLFI Outlines Token Release Plan, Locks All Insider Allocations
“Tokens are sacred and inviolable, this should be the most basic value of any blockchain,” Sun wrote in a statement on X. He added that blockchain principles are rooted in transparency and fairness, which he argued must be upheld for the project to succeed.
Early Support and Ongoing Talks
Sun had previously positioned himself as a long-term supporter of WLFI, stating that he had no plans to sell unlocked tokens “anytime soon.” He also noted that his involvement included both capital and strategic support to help build what he described as a healthy ecosystem.
In January, World Liberty Financial purchased millions of dollars’ worth of Tron’s TRX token, strengthening financial ties between Sun and the project. Despite the current dispute, a spokesperson confirmed that Sun and the WLFI team remain in active communication to address the matter.
Related: World Liberty Financial Sets Sept 1 Launch for WLFI Token on Ethereum
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Source: https://coinedition.com/justin-sun-presses-world-liberty-financial-to-release-frozen-wlfi-tokens/