Solana News Today: Trump-Backed Stablecoin Gets Big Boost From Justin Sun's $200M Bet

Justin Sun, founder of the Tron blockchain, has acquired $200 million worth of WLFI tokens following the token's unlock as part of the World Liberty Financial (WLFI) project's Token Generation Event (TGE) on September 1. Sun claimed 600 million WLFI, representing 3% of the 20 billion tokens unlocked during the TGE. At the time of the event, WLFI was trading at approximately $0.2453 per token, giving the project a market capitalization of $6.05 billion and a fully diluted value of $24.53 billion [1].

The TGE marked a significant milestone for WLFI, which is endorsed by former U.S. President Donald Trump. The token had previously traded in a derivatives form on perpetual markets, experiencing a 500% price surge just before the unlock [1]. Sun’s acquisition not only positions him as a major shareholder but also gives him substantial influence in the governance of the project. He has pledged not to sell the tokens and has committed to supporting the project through increased liquidity on the Tron network by boosting the USD1 stablecoin supply by $200 million [1].

USD1, the stablecoin pegged 1:1 to the U.S. dollar and backed by traditional assets such as U.S. Treasuries, has already expanded to multiple blockchain networks, including Ethereum, BNB Chain, and TRON. Its integration into the TRON ecosystem has been actively pursued by Justin Sun since May, with a series of rapid developments including minting, trading, and lending support [3]. The stablecoin’s expansion to Solana is currently underway, with early on-chain activity suggesting that it will be integrated into major protocols like Kamino Finance [5].

The Solana expansion is expected to inject new liquidity into the blockchain’s DeFi ecosystem, which has grown to a stablecoin market capitalization of over $12 billion. Analysts suggest that USD1 could diversify Solana’s stablecoin market, currently dominated by USDC and USDT [5]. The move also aligns with broader efforts to build a robust stablecoin ecosystem on Solana, where high-performance DeFi platforms are gaining traction.

Political affiliations remain a key aspect of the WLFI project. While the Trump endorsement has generated attention and media coverage, it also raises questions about regulatory scrutiny and market perception [2]. Justin Sun has emphasized his long-term commitment to WLFI, rejecting accusations of insider trading and expressing confidence in the project’s vision [2]. With nearly $1 billion in WLFI holdings and an additional $891.2 million in USD1, Sun’s influence on the project’s trajectory is substantial [2].

Despite the positive momentum, WLFI operates in a speculative environment with risks including price volatility and potential selling pressure. The token’s price dropped over 38% from its peak but still managed a 7% gain in the 24 hours following the TGE. Total trading volume across decentralized and centralized exchanges has exceeded $3.2 billion, indicating strong market interest [1]. Investors are advised to proceed with caution and carefully evaluate the project’s fundamentals before making significant commitments [1].

Source:

[1] Justin Sun Claims $200M of Trump's WLFI Token Unlock (https://finance.yahoo.com/news/justin-sun-claims-200m-trump-174018314.html)

[2] WLFI Crypto: Another Trump Token Launch, Justin Sun ... (https://99bitcoins.com/news/presales/wlfi-crypto-another-trump-token-launch-justin-sun-cashes-in/)

[3] TRON integrates USD1 to build a diversified stablecoin ... (https://www.okx.com/en-gb/news/article/tron-integrates-usd1-build-diversified-stablecoin-ecosystem-entire-defi-ecosystem-promotes-implementation-usd1-53576642375840)

[4] What is USD1: Guide to the Trump-Backed Stablecoin ... (https://medium.com/@GEMQUEENx/what-is-usd1-6006cabd7327)

[5] World Liberty Financial Prepares USD1 Stablecoin for ... (https://thecurrencyanalytics.com/altcoins/world-liberty-financial-signals-imminent-solana-rollout-for-usd1-stablecoin-193684)