The Trump family's cryptocurrency project World Liberty Financial suddenly turned against Sun Yuchen, directly blacklisting his wallet address and freezing nearly 3 billion worth of WLFI tokens in his possession. The project's reason was straightforward, claiming that a certain exchange had been using users' tokens to manipulate the market, clearly pointing to HTX behind Sun Yuchen.

This palace intrigue came out of nowhere. Just a few days ago, on-chain data showed that Sun Yuchen was still transferring WLFI in large amounts, with a single transfer of 50 million tokens worth 9.12 million USD. At that time, the market was speculating that he was going to deposit it into his own exchange, but unexpectedly the project party took direct lethal action.

Once the news broke, the price of WLFI first surged nearly 10%, as it seemed investors took this as good news, believing that the selling pressure was cleared. But the good times didn’t last long, as it quickly fell back down, plummeting more than 20% alongside another Trump concept coin, ABTC.

What’s even more interesting is that during this chaotic moment, top market maker Cumberland quietly entered the scene. On-chain data shows they received 10 million WLFI from BitGo, worth 2.05 million dollars. This institution is also a market maker for TRUMP, and now WLFI has gathered three major market makers: DWF Labs, Jump Trading, and Cumberland. Logically, it should be stable, but internal struggles are fierce.

Sun Yuchen being blacklisted this time is, to put it simply, a double-edged sword of celebrity effect. His early involvement indeed brought heat and liquidity, but once he turns against it, the enormous selling pressure threat immediately becomes a major concern for the project team. The project team can directly freeze the assets of specific addresses, and this operation completely exposes the centralized nature of so-called decentralized projects.

What is the biggest revelation of this farce? In the unregulated world of cryptocurrency, the project team holds absolute power over life and death, and any holder may face non-market risks. Moreover, projects that rely on celebrity appeal may face greater risks than returns once the honeymoon period ends.
$WLFI