Sun Yuchen VS Trump Family: 1 Billion Assets Frozen in 3 Days, Crypto Political Game Completely Explodes!
The conflict between Sun Yuchen and the Trump family over the WLFI project is essentially a hard clash between political capital and crypto power.
Sun Yuchen previously invested 75 million USD to raise the project's fundraising, facilitating the cooperation between the TRON chain and the Trump family's USD1 stablecoin. However, three days after the token went live, the project party banned it, freezing over 100 million USD in assets.
On the surface, Sun Yuchen's transfer of 5.289 million WLFI is accused of crashing the market, but in reality, HTX is dissipating retail investor chips through a 20% annualized coin deposit activity, which flows to the exchange through a transfer address, creating selling pressure. The project party believes this damages its political reputation.
The Trump family quickly banned it within 24 hours because WLFI carries its Web3 ambitions, and its paper wealth once reached 5 billion; it absolutely cannot tolerate market manipulation, especially since Sun Yuchen was sued by the SEC in 2023.
The incident tears apart the fragile alliance between the crypto circle and political forces, leaving the TRON ecosystem without a cooperative fulcrum, and the future of USD1 is uncertain.
It further exposes the contradictions of politically-backed projects: needing to decentralize to attract investment while maintaining absolute control to protect political interests. In the future, DeFi needs to balance regulation, investor protection, and decentralization, or the industry's original intent may gradually be lost.
The conflict between Sun Yuchen and the Trump family over the WLFI project is essentially a deep game of political capital and crypto power.
Sun Yuchen once invested 75 million USD to assist in the project's fundraising and promoted the strategic cooperation of the TRON chain carrying the Trump family's USD1 stablecoin. However, just three days after the token went live, the project party banned his address, freezing over 100 million USD in assets.
The surface dispute arises from differences in market operation, but at a deeper level, it is a contradiction in the interest structure and the maintenance of political capital— the project party needs to defend its political reputation, especially in the face of the market manipulation controversy regarding Sun Yuchen being sued by the SEC in 2023.
The incident not only tears apart the fragile alliance between the crypto circle and political forces but also exposes the core contradictions of politically-backed projects: needing to utilize the concept of decentralization to attract investment while maintaining absolute control to protect political interests.
In the future, DeFi projects will have to seek a balance between regulatory compliance, investor protection, and the principles of decentralization, which may mean a gradual fading of the industry's original intent.
Instead of watching from the sidelines, why not join Caijie and burn together!
