The launch of the digital currency WLFI sparked controversy and suspicion, after indications of questionable internal movements emerged linked to the founder of Tron, 'Justin Sun', whose wallet was later frozen by the project following controversial transfers.
On the launch day, only 4% of the tokens allocated for the community were activated, despite previous expectations that the percentage would be 5%.
“Quentin Francois,” co-founder of the “WeRate” platform, clarified that the actual liquidity and marketing ratio was 2.8% instead of 1.6%, raising the total circulating supply to 6.8%.
In contrast, the other allocations such as the ecosystem fund (10%) and the Alt5 Sigma share (7.8%) were not traded, despite being open source, but they were not subject to a clear vesting schedule, contributing to a misleading impression of liquidity abundance.
Own “Sun” about 3% of the total WLFI supply, but only 20% of its share was technically available at launch.
Despite his public commitment not to sell, movements on the network indicated otherwise.
Where “Sun” transferred $9 million worth of WLFI via HTX and Binance, according to tracking data from “Nansen” and “Bubblemaps” and “Arkham Intelligence”.
According to “Francois,” some trading platforms may have shed part of their early liquidity allocation, while “Sun” used its HTX platform to offer an annual return of 20% on WLFI deposits, allowing him to liquidate part of his holdings without drawing direct attention, and perhaps even compensate user withdrawals from his own balance.
These movements raised widespread doubts about the potential exploitation of user deposits to liquidate personal holdings, which prompted the WLFI team to freeze Sun's wallet using the “guardianSetBlacklistStatus” feature.
Some considered this freeze a necessary step to curb practices believed to be a repeat of the pump and dump tactics that “Sun” was accustomed to in previous projects.
For his part, “Sun” described the freeze decision as unfair, asserting that as an early investor he deserves the same rights as other investors.
In an attempt to absorb the anger and restore trust, he announced his intention to purchase WLFI worth $10 million from his own funds.
