On September 7, a close-up photo of Sun Yuchen and Eric Trump at a luxurious dinner in Miami attracted market attention, causing the Trump family's associated token WLFI to rise by 12%. However, the glamorous facade hides a brutal truth: only 8% of the total 100 billion WLFI tokens are in circulation, and the highly controlled structure lays the groundwork for subsequent crashes.
On-chain data reveals the essence of capital games. Within two hours after the dinner, an address associated with Sun Yuchen transferred 800 million WLFI to the exchange through split transactions, cashing out about 2 billion RMB. This method of 'high-position split selling' is reminiscent of his manipulation of TRON in 2017. As the sell-off continued, WLFI's price plummeted by 16%, causing significant losses for following retail investors.
The event reversed rapidly within twelve hours. The Eric team urgently deleted all group photos and interaction traces, and the Trump family froze two core wallets of Sun Yuchen through a smart contract preset authority, locking 1.42 billion WLFI (worth about 3.5 billion RMB) on-chain. This seemingly sudden "backstab" was actually caused by an imbalance in profit distribution leading to internal strife.
On a deeper level, this incident exposed the inherent risks of political tokens:
1. High Control Characteristics: WLFI's only 8% circulation makes its price easily manipulable
2. Regulatory Risk: The SEC is strengthening its scrutiny of tokens associated with politicians
3. Conflict of Interest: The Trump family can obtain 75% of the net income share from the project
The market's chain reaction became immediately evident: Tron dropped by 7%, and the price of WLFI nearly approached zero. This farce ultimately confirmed the cruel laws of the cryptocurrency market: celebrity endorsements are not as reliable as on-chain data, and the rise and fall of high-control tokens completely depend on the will of the market makers. Political tokens are essentially beautifully packaged emotional derivatives.
The lessons left by the event for the market are profound: investors should be wary of low circulation tokens, pay attention to on-chain data monitoring, and recognize the marketing essence of celebrity endorsements. Against the backdrop of tightening regulations, such highly centralized token projects will eventually face dual liquidation from both the market and regulators.
