Trump Crypto Tumbles as Sun's Blacklisted Stake Shakes Market Trust

Generated by AI AgentCoin World
Friday, Sep 5, 2025 11:12 am ET2min read
Aime RobotAime Summary

- World Liberty Financial (WLFI) blacklisted Justin Sun's address holding 595M tokens ($107M), triggering market volatility after a $9M token transfer.

- The Trump family owns 22.5B WLFI tokens ($5B value), leveraging token governance rights despite claims it's not a financial investment.

- WLFI dropped 42% since its Sept 1 debut, with Sun's $750M stake and Trump-linked meme coins like $TRUMP showing crypto's speculative nature.

- Meme coin BullZilla (BZIL) raised $148K in presale with 27,500% ROI potential, highlighting 2025's viral crypto trends driven by community engagement.

World Liberty Financial (WLFI), the crypto protocol linked to Donald

and his family, has recently seen significant turbulence following the blacklisting of a key blockchain address belonging to founder and major investor Justin Sun. The blacklisted address holds 595 million unlocked WLFI tokens, valued at approximately $107 million at current prices [1]. This action follows a series of outbound transactions, including a $9 million transfer of WLFI tokens, which Sun claims did not involve any buying or selling and therefore could not influence the market [1]. Despite these assurances, the token has fallen 20% in the past 24 hours and is down 42% since its trading debut on September 1 [1].

The WLFI token has become a major financial instrument for the Trump family, which holds 22.5 billion tokens and has seen its stake grow to around $5 billion, according to market valuation [2]. Although these tokens are currently locked and cannot be sold, their value has contributed significantly to the Trumps' wealth. WLFI holders are also granted voting rights on governance issues for the protocol, adding a layer of influence to token ownership [3]. This model is distinct from traditional speculative investments, as WLFI’s terms explicitly state it is not an investment for financial gain [3].

Justin Sun’s involvement in World Liberty Financial has been extensive, starting with a $30 million token purchase and advisory role in late 2024. His investment grew to about $75 million by mid-2025, and he was reported to hold nearly $700 million worth of WLFI tokens before vesting periods ended [1]. His role in the Tron ecosystem has further deepened the connection between the two projects, with Eric Trump recently planning to launch the protocol’s USD1 stablecoin on Tron [1]. Despite these ties, Sun maintains he has no intention of selling his unlocked tokens soon [1].

World Liberty Financial’s emergence as a key player in the crypto space has drawn both attention and scrutiny. The token’s volatility is not unusual for new crypto launches, and experts attribute its early price swings to typical market behavior, such as initial hype followed by profit-taking [3]. Nic Puckrin, CEO of Coin Bureau, noted that while WLFI’s decline is moderate compared to other token debuts, early backers have still seen substantial returns from private sales [3]. The protocol’s USD1 stablecoin, which is pegged to the U.S. dollar, offers a relatively stable alternative within the broader WLFI ecosystem [3].

Beyond WLFI, the Trump family has been active in the meme coin market, with projects like $TRUMP and $Melania gaining attention. These coins, which are linked to internet trends and celebrity influence, have shown both rapid growth and volatility. For example, the $TRUMP meme coin saw its value nearly double to $15 in May 2025 after offering dinner invites to top holders, though it has since lost much of that gain [2]. Meme coins remain a highly speculative segment of the crypto market, with their success often hinging on viral appeal rather than underlying economic fundamentals [4].

The broader crypto landscape in 2025 has seen a surge in interest in meme coins, with projects like BullZilla (BZIL) emerging as top contenders. BullZilla’s presale has raised over $148,593, with more than 16.25 billion tokens sold across 24 stages [4]. Its structured model includes progressive price increases every 48 hours or $100K in sales, offering early buyers potential returns of over 27,500% [5]. Features such as the Roarblood Vault and HODL Furnace, which offer staking rewards and community-driven growth, distinguish BullZilla from other meme coins like

and Pepe [5]. As meme coins continue to dominate market conversations, projects like BullZilla highlight the evolving nature of crypto investing, where community engagement and viral narratives play as crucial a role as traditional financial metrics.

Source:

[1] World Liberty Financial blacklists Justin Sun's address with 595 million WLFI tokens (https://www.coindesk.com/tech/2025/09/04/world-liberty-financial-blacklists-justin-sun-s-address-with-usd107m-wlfi)

[2] New crypto token boosts Trump family's wealth by $5 billion (https://www.cbsnews.com/news/trump-wlfi-world-liberty-financial-crypto-wealth/)

[3] Trump family profits from launch of World Liberty Financial (https://abcnews.go.com/US/trump-family-profits-launch-world-liberty-financial-crypto/story?id=125179318)

[4] The Next 1000x Meme Coin Opportunity: BullZilla and 9 other best cryptos to invest in 2025 (https://coincentral.com/the-next-1000x-meme-coin-opportunity-bullzilla-and-9-other-best-cryptos-to-invest-in-2025/)

[5] 7 Meme Coins in Focus: BullZilla's 27500% ROI Potential (https://www.digitaljournal.com/pr/news/indnewswire/7-meme-coins-focus-bullzilla-s-1658391875.html)

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