newsycanuse

Justin Sun Faces $11M WLFI Drop as World Liberty Rejects Fears

faces

TLDR

  • Justin Sun’s frozen WLFI holdings lost over $11 million in 24 hours.
  • WLFI price dropped 15% daily and over 74% since its launch.
  • World Liberty Financial blacklisted Sun’s wallet, freezing his tokens.
  • The project used WLFI as collateral to borrow stablecoins on Dolomite.
  • World Liberty denied liquidation risks and called concerns “FUD.”

Justin Sun recorded a fresh loss as WLFI price dropped sharply within 24 hours. His frozen token holdings declined by over $11 million in value. Meanwhile, World Liberty Financial rejected concerns tied to its borrowing activity.

The decline followed a 15% daily drop in WLFI’s market price. The token has also fallen more than 74% since its trading debut last year. Sun’s locked position remains inaccessible after earlier blacklist actions.

Justin Sun Holdings Decline as WLFI Price Weakens

Justin Sun’s exposure to WLFI decreased as market prices continued to fall. His frozen holdings lost value and now stand near $45 million.

Blockchain data shows he holds about 545 million WLFI tokens. However, the tokens remain frozen due to earlier restrictions placed by the issuing project.

Sun initially invested $30 million in late 2024 before trading began. He later increased exposure, bringing his total WLFI position near $75 million.

At the same time, he committed $100 million to Donald Trump’s TRUMP memecoin. These combined moves expanded his footprint across politically linked crypto assets.

However, World Liberty Financial blacklisted a wallet tied to Sun last year. The action followed a transfer of roughly $9 million in WLFI tokens.

As a result, Sun cannot move or sell the frozen tokens. This restriction limits his ability to respond to market changes.

Recent estimates show his holdings have dropped over $80 million from earlier valuations. The decline reflects ongoing price pressure on WLFI.

Borrowing Activity Draws Scrutiny as Project Responds

World Liberty Financial increased activity on the Dolomite lending protocol. The project deposited billions of WLFI tokens as collateral.

In return, it borrowed tens of millions in stablecoins. This move triggered concern among market observers about potential risks.

Critics warned that falling WLFI prices could create bad debt exposure. They pointed to the scale of collateral relative to borrowed funds.

Concerns also arose due to internal connections within the project. Dolomite co-founder Corey Caplan serves as an advisor to World Liberty Financial.

However, the project dismissed these concerns in public statements. It described the claims as “FUD” and rejected liquidation risks.

The team stated, “We are nowhere near liquidation.” It added that it could supply more collateral if markets moved sharply.

World Liberty Financial said it acts as an “anchor borrower” on Dolomite. It argued that this role helps generate higher yields for users.

The project also maintained confidence in WLFI despite the price decline. It continued to defend its lending strategy in public posts.

Read More
Maxwell Mutuma

Latest

Irankunda

Nestory Irankunda scores Australia’s first World Cup goal against Turkiye

0
Nestory Irankunda buried Australia’s opening goal of the 2026 FIFA World Cup on June 14, finishing a counter-attack in the 27th minute against Turkiye in Vancouver. At 20 years old, he became the youngest player in Socceroos history to score at a World Cup. The goal gave Australia a 1-0 lead in their Group D
Ancelotti

Carlo Ancelotti takes responsibility for Brazil’s 1-1 draw with Morocco as crypto fan tokens enter the World Cup spotlight

0
Brazil opened their 2026 FIFA World Cup campaign with a 1-1 draw against Morocco on June 13, and Carlo Ancelotti accepted full responsibility for the tactical shortcomings that left the five-time champions splitting points in their Group C opener. Ancelotti promised improvement and reminded everyone that you don’t win a World Cup in your first
Defeats

Scotland defeats Haiti 1-0 in World Cup opener, tops Group C

0
Scotland picked up their first World Cup victory in 28 years on June 13, beating Haiti 1-0 in their Group C opener at the 2026 FIFA World Cup. John McGinn scored the only goal of the match in the 28th minute, pouncing on a rebound after Haitian goalkeeper Johny Placide saved an initial effort from
network

Pyth Network Targets Bloomberg’s $50 Billion Market-Data Empire

0
Pyth Network is pushing deeper into the more than $50 billion market for financial data, launching 24/7 index products across metals, oil, and U.S. equities as it positions its onchain price feeds against incumbents like Bloomberg. Key Takeaways Pyth Network launched 24/7 indices for metals, oil, and U.S. equities, adopted by Coinbase and Kraken. Euronext

Newsletter

Don't miss

Irankunda

Nestory Irankunda scores Australia’s first World Cup goal against Turkiye

0
Nestory Irankunda buried Australia’s opening goal of the 2026 FIFA World Cup on June 14, finishing a counter-attack in the 27th minute against Turkiye in Vancouver. At 20 years old, he became the youngest player in Socceroos history to score at a World Cup. The goal gave Australia a 1-0 lead in their Group D
Ancelotti

Carlo Ancelotti takes responsibility for Brazil’s 1-1 draw with Morocco as crypto fan tokens enter the World Cup spotlight

0
Brazil opened their 2026 FIFA World Cup campaign with a 1-1 draw against Morocco on June 13, and Carlo Ancelotti accepted full responsibility for the tactical shortcomings that left the five-time champions splitting points in their Group C opener. Ancelotti promised improvement and reminded everyone that you don’t win a World Cup in your first
Defeats

Scotland defeats Haiti 1-0 in World Cup opener, tops Group C

0
Scotland picked up their first World Cup victory in 28 years on June 13, beating Haiti 1-0 in their Group C opener at the 2026 FIFA World Cup. John McGinn scored the only goal of the match in the 28th minute, pouncing on a rebound after Haitian goalkeeper Johny Placide saved an initial effort from
network

Pyth Network Targets Bloomberg’s $50 Billion Market-Data Empire

0
Pyth Network is pushing deeper into the more than $50 billion market for financial data, launching 24/7 index products across metals, oil, and U.S. equities as it positions its onchain price feeds against incumbents like Bloomberg. Key Takeaways Pyth Network launched 24/7 indices for metals, oil, and U.S. equities, adopted by Coinbase and Kraken. Euronext
Macron

Macron and Trump test their bruised bromance at G7 summit

0
For help please visit help.ft.com. We apologise for any inconvenience. The following information can help our support team to resolve this issue. Reason Challenge Request ID a0ba469e68afe135 Status Code 403
newsycanusehttps://newsycanuse.com

Your business texts could look like scam messages from July 1 if you don’t act now

From July 1, any branded SMS your business sends without a registered sender ID will be labelled “Unverified” and grouped with scam messages.  What’s happening: From 1 July 2026, any business or organisation that sends SMS using a branded name, such as “MyShop” or “AcmeServices”, instead of a phone number, must have that sender ID
Read more

Business groups are fighting Labor’s CGT changes. Here is where SMEs stand

Labor’s most contested tax reform in a generation cleared its first formal hurdle on Thursday and immediately ran into organised resistance. Treasurer Jim Chalmers introduced the government’s tax reform legislation to the House of Representatives on 28 May, bundling together four budget measures: the capital gains tax overhaul, new limits on negative gearing, a $250
Read more

Meet the most influential business owners from Southwest Nigeria

This article spotlights the most influential business owners from Southwest Nigeria, adjudged by their dominance in their respective sectors of the economy where they operate. The post Meet the most influential business owners from Southwest Nigeria appeared first on Nairametrics...
Read more