Crypto billionaire Justin Sun got frozen out of nearly $900M in tokens after a bitter clash with Trump backed World Liberty Financial over their new token WLFI
Sun, founder of Tron and advisor to exchange HTX, poured $75M into WLFI late last year, becoming both a top investor and official advisor. His stake ballooned to almost $900M at peak prices, with 600M tokens unlocked at launch. Trouble hit when Sun’s exchange offered users 20% APY on WLFI deposits. On-chain data later showed a wallet linked to him moving 50M WLFI ($9.1M), sparking accusations that he was using user funds to sell his vested position. WLFI struck back blacklisting his wallet and freezing all 3B tokens tied to him, including locked allocations worth the best part of a billion dollars. The fallout was swift, WLFI’s price crashed nearly 50% to $0.16, open interest soared past $930M, and Sun was left publicly pleading for his funds to be restored. WLFI, pitched as a DeFi token, is still trying to figure out what the De stands for. Reputation damage significant to all parties. There is now a deficit I believe where HTX still owes user deposits that don't exist on the exchange. Maybe Justin will be forced to buy back these or maybe there are reasons he was selling and holds out. I took a short term long position as I think there's decent risk to reward, it felt a little dirty.
Bitcoin had a 13% pull back after making a new all time high on August 14th. Seems to be consolidating, hopefully before another push up. Eth has been outperforming and ETH/BTC is up over 100% from the lows in May. Bitcoin dominance has dropped to 58% and I expect it to continue dropping as long as the market doesn’t puke. September is a funny month for crypto and historically hasn’t been a great. Everyone is returning to their desks after summer breaks and catching up. The institutional buyers are still bidding. Microstrategy has calmed down a lot but Bitmine and Sharplink have taken a very aggressive strategy to allocating capital to ETH. Social links are below and if you enjoyed this newsletter I would appreciate it if you could share this content
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