WLFI Controversy Over Restrictions on Certain Addresses Amid Price Slump
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According to blockchain analysts Nansen and kham (Korea Times), the address was flagged immediately after transferring 50 million WLFI tokens. Some have raised suspicions that WLFI protected its price by restricting selling by certain users during its first week of public trading.
Justin Sun countered in a post on X (formerly Twitter) the same day, saying, "We simply conducted a test deposit of a very small amount of tokens into the exchange, and it had no impact on the market." He emphasized, "We will not be selling any tokens soon and plan to remain committed to the project for the long term."
WLFI is a decentralized finance project supported by US President Donald Trump. The token officially began trading on the 2nd and rose to $0.32, but according to CoinMarketCap on the 4th, it fell 22% to trade below $0.18.
In response to the price plunge, WLFI implemented measures to reduce its circulation. Approximately 47 million tokens were burned over three days, and a program was also launched to repurchase and burn additional tokens using funds raised from protocol fees. However, the rapid price fluctuations and accumulated losses eroded investor confidence, and WLFI was ranked among the top 10 most undervalued tokens according to CoinMarketCap.
According to Cointelegraph, a spokesperson for Justin Sun said, "Justin and the WLFI team are actively communicating on this matter."
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
