Is Justin Sun planning to sell WLFI after moving coins to HTX?

Source Cryptopolitan

Justin Sun started moving his allocated WLFI tokens, sending $1M to the HTX exchange. The crypto gallery is closely watching Sun if he eventually resorts to selling his WLFI. 

Wallets linked to Justin Sun are moving WLFI tokens, with some of them sent to the HTX exchange. HTX, which was acquired by Sun in 2022, may turn into one of the main hubs for WLFI activity. However, Sun’s wallets are closely watched for direct WLFI selling, as some early whales have depressed the market price soon after the unlocking. 

Sun only sent a partial amount of WLFI to the exchange, retaining over 600M unlocked tokens. In total, Sun has received 3B WLFI as an early participant, injecting $75M into World Liberty Fi. Previously, Sun reached an agreement with World Liberty Fi to avoid selling the early token allocation. The token remains a voting token and a potential DeFi collateral.

 

As of September 2, HTX offered a native Flexible Earn limited yield plan for WLFI, offering 20% annualized for deposits. The exchange offers a similar yield for Official Trump (TRUMP). The two tokens offer the highest returns on the exchange, even surpassing stablecoins. 

That’s why there are suggestions that the WLFI in transit may not be sold, but instead used as collateral.

Justin Sun and whales closely monitored as WLFI stabilizes 

WLFI stabilized around $0.23 after the initial trading shock and whale selling. Big holders are retaining some of the unlocked tokens, and the remaining balance has been locked with a long-term schedule. 

World Liberty Fi just announced the burn of 47M tokens aimed at boosting the market price. Whales are still closely watched, as the token still accrues listings and is in a process of price discovery.

Unlike Official Trump, WLFI tokens may be deliberately curated to avoid an unraveling price. Despite the WLFI publicity, TRUMP remains stagnant just under $9, a reminder of the unsustainability perception around the celebrity meme token trend. 

WLFI still shows limited activity

WLFI accrued $9.3M on its most active decentralized pair, despite its fully diluted value above $22.9B. 

Even the top whales have taken relatively small profits. The biggest seller locked in $491K after the initial pump. Compared to previous meme token launches, WLFI activity was subdued. 

WLFI buyers acquired the tokens as a form of support for TRUMP, and not all were crypto savvy or with trading experience.

Another 100 wallets were exposed to malicious smart contracts, potentially losing their WLFI. 

Justin Sun moved WLFI, is he planning to sell?
WLFI started out with peak DEX activity on Uniswap, but saw an immediate slowdown to under $500K in daily volumes. | Source: Dune Analytics

The token’s DEX activity also slowed down in the days after the initial launch. Following the initial rush to trade WLFI, Ethereum gas returned to normal prices under 1 gWei. World Liberty Fi announced the launch as a success, showing there were no team sales. Early buyers during discounted presales were also prioritized.

Uniswap was the main venue for WLFI trading, as the token now awaits listings and centralized activity. After the initial rush to sell or re-buy lower, WLFI is settling with most of its volumes on Bybit and OKX. DEX volumes reached $128M in the initial days, later sliding under $500K on the most active DEX pairs. 

If you're reading this, you’re already ahead. Stay there with our newsletter.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Japanese Yen slides to nearly one-week low against rebounding USD; downside seems limitedThe Japanese Yen (JPY) trades with a negative bias for the third consecutive day against US Dollar (USD) during the Asian session on Tuesday.
Author  FXStreet
Sep 02, Tue
The Japanese Yen (JPY) trades with a negative bias for the third consecutive day against US Dollar (USD) during the Asian session on Tuesday.
placeholder
ADP Employment Change is likely to increase concerns about the US labour marketThe ADP and NFP reports will serve as indicators of US employment this week, the canary in the cage for the Fed’s policy.
Author  FXStreet
16 hours ago
The ADP and NFP reports will serve as indicators of US employment this week, the canary in the cage for the Fed’s policy.
placeholder
Forex Today: Gold corrects from record-high, USD awaits key data releasesFinancial markets turn relatively quiet early Thursday, following the volatile action seen in the first half of the week.
Author  FXStreet
16 hours ago
Financial markets turn relatively quiet early Thursday, following the volatile action seen in the first half of the week.
placeholder
ISM Services PMI Preview: US services sector expected to accelerate in AugustOn Thursday, we’ll get the latest read on the US services sector when the Institute for Supply Management publishes its August Services PMI.
Author  FXStreet
16 hours ago
On Thursday, we’ll get the latest read on the US services sector when the Institute for Supply Management publishes its August Services PMI.
placeholder
Experts Warn Fed Against Rate Cuts Despite 99% Market ConfidenceWhile Wall Street may be convinced the Federal Reserve (Fed) is about to slash interest rates, many experts argue the hard economic data says otherwise.
Author  Beincrypto
14 hours ago
While Wall Street may be convinced the Federal Reserve (Fed) is about to slash interest rates, many experts argue the hard economic data says otherwise.
goTop
quote