1. From 'close together' to 'asset freeze': A plot twist within 24 hours
The starting point of this storm was a seemingly ordinary Miami dinner:
September 7: Celebrity endorsement, market frenzy
Sun Yuchen and Trump's second son Eric publicly appeared together, interacting closely as if they were 'friends.' As soon as the news broke, the token $WLFI associated with the Trump family immediately gained attention, surging 12% in a single day. Seeing the combination of 'celebrity photo + market rise,' many retail investors, hoping to 'eat meat by following the big shots,' rushed to jump in and ride the wave for profit.
In less than 24 hours: Secretly selling off, the market crashes
No one expected that this 'carnival' would be so short-lived. WLFI suddenly plummeted, dropping 25% in one day, and on-chain data directly unveiled the truth: Sun Yuchen secretly sold 750 million WLFI, cashing out nearly 1.8 billion RMB! This wave of 'running first to pay respects' operation instantly trapped retail investors who entered at a high, leading to widespread complaints in the market, with many saying they were 'cut down'.
The Trump family 'swift cut + fierce action'
Faced with Sun Yuchen's 'betrayal', Eric reacted quickly — deleting all photos with Sun Yuchen overnight and rapidly unfollowing on social media, completely distancing himself with a 'swift cut' posture. Even more ruthless, related Trump institutions immediately acted, directly freezing Sun Yuchen's two wallets, locking 1.2 billion $WLFI, and completely cutting off his path for further operations.
II. Abnormal details: Trading volume surged by 250%, is it a backlash or a 'trap'?
After WLFI was frozen, there was an unusually strange detail: the trading volume of the token not only didn’t drop but instead soared by 250%. This phenomenon raises suspicion: is this backlash a result of Sun Yuchen 'betraying retail investors', or is it a setup that was planned in advance?
It should be noted that the circulation of WLFI is only 10%, and the control is completely in the hands of the big players. Such an abnormal trading volume is hard not to associate with — this may be a strategy of the big player using 'celebrity hype + freezing events' to create volatility, attracting retail investors to panic sell or chase the rise, essentially a 'trap'.
III. Sun Yuchen's 'Destructive Cost': All money, credit, and subsequent troubles are gone.
The impact of this incident on Sun Yuchen is truly 'destructive':
3 billion assets locked, liquidity crisis: The frozen 1.2 billion WLFI is approximately 3 billion RMB, and this portion of assets cannot be used in the short term, directly affecting his cash flow.
Credit has completely collapsed, making it hard for big shots to establish themselves: From 'secretly selling off to cut retail investors' to 'being cut off by the Trump family', Sun Yuchen's years of accumulated 'network credit' has been destroyed in an instant. In the future, it will be as difficult as ascending to the sky for him to establish himself in the crypto big shot circle.
Associated tokens are implicated, and regulatory risks are rising: The core associated TRX token is also affected by this incident, plummeting 6% in a single day; more troubling is that the SEC may investigate 'political concept coins', and WLFI, as a token associated with the Trump family, is likely to be targeted, leading to significant regulatory pressure in the future.
IV. Warning for retail investors: These three points must be remembered.
Looking back at the entire incident, retail investors could have avoided this 'disaster'; the key lies in adhering to three principles:
Don't be deceived by 'celebrity photos': The 'intimate interactions' in front of the camera are likely performances of interest exchange. Celebrity endorsement does not mean the token has value; it may instead be a tool for the big players to drive up prices and cut down on retail investors.
On-chain data is the 'mirror': Compared to verbal promises and celebrity endorsements, real-time on-chain transaction records better reflect the real situation. For instance, Sun Yuchen's sale of 750 million WLFI could have been detected from on-chain data much earlier.
Beware of 'low circulation + high hype' concept coins: Especially 'political concept coins', low circulation means high control, and the big players can easily trigger a crash; the policy change risks brought by political associations far exceed those of ordinary tokens, and entering is basically 'a life-and-death gamble'.
Looking back now, was this farce caused by Sun Yuchen's 'self-importance and insatiable greed', or was it the Trump family's 'black eat black' to evade regulation? Can Sun Yuchen revive 3 billion frozen assets and turn the tables? Feel free to share your thoughts in the comments section. You can also follow me for more first-hand market analysis in the crypto circle to help you avoid risk zones and seize truly valuable opportunities.
