Justin Sun's $1M WLFI Move Signals DeFi Power Play

Justin Sun, founder of TRON and co-founder of HTX and Poloniex, recently transferred $1 million worth of WLFI tokens to HTX, further solidifying his involvement in the DeFi project World Liberty Financial (WLF). This move follows Sun’s acquisition of 600 million WLFI tokens at the Token Generation Event (TGE), which represented 3% of the 20 billion unlocked supply. The allocation, valued at approximately $200 million at the time, positions Sun as a major stakeholder in the project and grants him significant influence over its governance [1].

WLF, a decentralized finance initiative launched in 2024, has introduced the $WLFI token and a stablecoin, USD1, as central components of its ecosystem. The $WLFI token was initially designed as a governance tool but has since transitioned into a tradable asset. However, the token has faced volatility, with its price dropping by 25% after its initial launch. In contrast, USD1 is structured to maintain a one-to-one peg with the U.S. dollar, offering stability in a market known for rapid price swings [1].

HTX, under Sun’s leadership, has introduced a new earning product called WLFI Flexible Earn, offering investors a 20% annual percentage yield (APY) for a limited period. The product allows for hourly compounding and provides flexibility for users to deposit and redeem funds at any time. This initiative has contributed to a 9% surge in WLFI’s price, with the token trading at $0.2516 as of press time. Daily trading volume has also seen a notable increase, reaching $4.4 billion, reflecting growing investor interest [2].

In addition to the flexible earning product, WLF has launched a token burn and buyback program aimed at reducing the circulating supply of WLFI. The initiative allocates 100% of fees generated from protocol-owned liquidity to the open market purchase of WLFI tokens, which are then sent to a burn address. This deflationary strategy is intended to enhance value for long-term holders and create a self-sustaining cycle of increased protocol usage and reduced supply [2].

Sun has been vocal in his support for WLF, emphasizing his commitment to the project and stating that he has "no plans" to sell his holdings. His overall crypto portfolio is valued at approximately $2.9 billion, with WLFI forming a significant portion of his assets. Alongside WLFI, his largest holdings include $687 million in TRX tokens and $478 million in staked ether (STETH) [1]. The WLFI token remains a key focus for Sun, who has consistently promoted the project on social media, highlighting its potential as a platform for on-chain borrowing, lending, and financial innovation.

Source:

[1] Justin Sun Has $700 Million WLFI After Launch (https://info.arkm.com/research/justin-sun-wlfi-launch-world-liberty-trump)

[2] WLFI Price Jumps 9% as Justin Sun's HTX Exchange ... (https://finance.yahoo.com/news/wlfi-price-jumps-9-justin-123856694.html)