Nansen's CEO Alex posted a message about $WLFI yesterday, further exploding the situation: Brother Sun did not sell coins to crash the market; the market crashers are someone else!

Previously, it was disclosed that the main leading institutions investing and participating in WLFI include Web3Port (100 million USD), Sun Yuchen (75 million USD), DWF (25 million investment + market making), JumpCrypto (485 million market-making tokens, accounting for 0.485% of the total).

In addition to the above institutions, there are many other institutions/platforms/small and medium investors that participated in the $WLFI market activities. This includes 300 million USD raised at a price of 0.015 (20 billion tokens) and 250 million USD raised at a price of 0.05 (5 billion tokens), all of which are subject to a 20% TGE unlock, objectively speaking, all contribute to the selling pressure at the opening.

For example, those familiar with Jump Crypto's market-making style know that at the opening, they ensure maximum profit by crashing the market through spot selling + contract shorting. And those familiar with the style of Web3Port need not mention, they only sell and do not buy.

Returning to a few days ago, rumors circulated about Brother Sun's address selling coins (which was marked by Arkham with low credibility and has now been corrected) were actually HTX exchange's hot wallet; related transfers are routine operations of market makers—when exchanges are active frequently, market makers will conduct large transfers between multiple popular exchange wallets (such as HTX, Binance) to balance liquidity and arbitrage.

Alex also mentioned that these related transfers occurred after the WLFI coin price significantly dropped, and were not the reason for the decline. The related funds (approximately 12 million USD) only accounted for a very small proportion of the total network trading volume that day, and did not constitute a substantial impact on the market price.

A more factual explanation is that large funds were transferred to Flow Desk and Jump Crypto, then flowed into several leading exchanges for selling.

Additionally, the circulating data at the opening of WLFI has been changing; how did the extra chips flow out? Through whom were they sold?

To summarize, there is quite a bit of external force conducting large-scale short selling through market-making institutions and the institutional accounts of multiple trading platforms (with such lucrative prices and liquidity, of course, they want to sell).

The final result is that during the activities between exchanges, the address used for transfers via HTX's hot wallet was mistakenly attributed to Sun Yuchen's address, leading the community to interpret it as Brother Sun crashing the market, putting the blame on him.