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“Allegations have surfaced that Justin Sun engaged in dubious tactics by channeling WLFI through his exchange, HTX. He reportedly offered users a 20% annual percentage yield (APY) for depositing WLFI, allowing him to offload a significant portion of his own holdings under the guise of user staking.
Allegations suggest that this maneuver not only enabled him to profit from the situation but also that he intended to cover any withdrawals or sell-offs with his own tokens, further complicating retail investors’ returns.
As Bitcoinist reported on Thursday, Sun’s alleged manipulation led to the freezing of his wallet address. As a result, there is growing concern among experts that WLFI could ultimately face a trajectory toward zero.
Could The WLFI Price Plummet To Zero?
In a recent social media post, user OxPunisher outlined the patterns of manipulation associated with Sun, referencing his history of questionable trades between 2018 and 2020, which reportedly resulted in $31 million in illicit profits.
This ongoing saga continued into 2024, when Sun withdrew $732 million worth of Bitcoin from USDD collateral, and in late 2024, he invested $30 million into WLFI just as the SEC paused his case, further raising alarms among investors.
The narrative surrounding WLFI appears precarious at best. The expert asserts that without Justin Sun’s liquidity strategies the token’s value could collapse.”
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