A major unexpected event occurred, Sun Yuchen (commonly referred to in the circle as “Brother Sun”) had two core digital wallets frozen by organizations associated with the Trump family, involving 1.42 billion WLFI tokens, which, based on the market price on that day, is equivalent to approximately 3.5 billion yuan. This news quickly caused a stir in the cryptocurrency market, leaving investors in an uproar.
The speed of the cooperation's 'fallout' is astonishing
The reversal of events is full of drama. At a high-end dinner held in Miami, Sun Yuchen and Eric Trump, the second son of former U.S. President Trump, were chatting happily; they were even photographed toasting together in the center position of the dinner. At that time, Eric Trump publicly stated, 'Mr. Sun is our important partner.' Following this news, a large number of retail investors rushed to buy WLFI tokens, hoping for a price increase.
However, just two days later, the market showed signs of abnormal activity. First, the price of the WLFI token dropped by 16%, and then Eric Trump deleted all photos with Sun Yuchen from social media in just 5 minutes and unfollowed all accounts related to Sun Yuchen. Subsequently, institutions associated with the Trump family took action to freeze Sun Yuchen's wallet, with a series of actions labeled 'delete photos - unfollow - freeze' raising significant doubts about the cooperation between the two parties.
Market speculations abound
There are various opinions in the market regarding the reasons behind the Trump family's sudden hardline measures.
Insiders have revealed that this may be related to alleged violations of regulations by Sun Yuchen's team. Rumors suggest that Sun Yuchen's side privately sold 800 million WLFI tokens, leading to significant profits and putting pressure on the token price to fall, harming the interests of partners and investors.
Some analyses suggest that this may be related to regulatory pressure. Recently, the U.S. Securities and Exchange Commission (SEC) has intensified its regulatory efforts on the cryptocurrency market. The Trump family may have chosen to distance themselves from Sun Yuchen to avoid potential regulatory risks that could affect Trump's political activities due to collaborations with cryptocurrency projects.
In addition, some market participants speculate that there may be disputes over profit distribution between the two parties. After all, since the launch of the WLFI project, it has gained considerable attention due to the influence of both parties, and it is not impossible for disagreements to arise over profit distribution.
Causing multiple shocks to the market
This incident has caused a significant impact on the market. In addition to the volatile price of the WLFI token, another important token under Sun Yuchen, TRX (Tron), has also been implicated, with a price drop of 7%.
Many investors have suffered heavy losses. Many retail investors only bought the WLFI token after seeing the collaboration news between Sun Yuchen and Eric Trump. In just a few days, not only did they not see the expected rise, but they also faced a dual blow of a significant price drop and changes in the project's partnership, leading to rising voices for rights protection.
This incident has once again raised doubts in the market about the 'celebrity linkage' model in the cryptocurrency space. In the past, many cryptocurrency projects attracted investors through celebrity endorsements and collaborations with well-known figures, but often ended with retail investors being left holding the bag and the projects collapsing. The recent changes in the WLFI project further expose the risks behind such collaborations, leading to a significant decline in investor trust in the celebrity effect.
Currently, neither Sun Yuchen's side nor the Trump family has made an official response to this matter. The future direction of the WLFI project and the handling of frozen assets are still to be observed. The uncertainty in the cryptocurrency market has been highlighted again, and investors need to remain cautious and rational in dealing with various project promotions and collaboration news.
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