Tron crypto wavers as Justin Sun claims $200m WLFI holdings

Currently, Tron founder and Trump business partner Justin Sun holds WLFI tokens worth $891.2 million.

TRX crypto is facing renewed volatility amid the public release of the World Liberty Financial (WLFI) token. On Monday, Sept. 1, Tron (TRX) was trading at $0.3364, down 1.8% from the prior day. This performance coincided with Tron founder Justin Sun deepening his business ties to Trump’s crypto venture.

Notably, Justin Sun revealed that he claimed his 20% unlock of WLFI, a sum worth almost $200 million. According to blockchain analytics firm Arkham, Sun now holds WLFI tokens worth $891.2 million. Moreover, Sun claims that he will not sell his stake “anytime soon.”

While Sun’s close association with Trump could be good for TRX, in the same announcement Sun also committed to increasing the circulation of the WLFI stablecoin USD1 on the Tron blockchain to $200 million.

Still, Sun’s extensive investments in Trump’s various business ventures also raise eyebrows. In November, Justin Sun invested $30 million in the WLFI, which made him the largest single backer. The stream of investments in Trump’s memecoin (TRUMP) and now the WLFI token may indicate a shift in focus and capital away from Tron’s ecosystem.

Tron sees a major wave of whale selling

These concerns are compounded by a wave of whale profit-taking earlier last month. Notably, on August %, Tron recorded $1.4 billion in realized profit in a single day. According to Glassnode, this was the second-largest profit event year to date.

Moreover, the majority of these realized profits were made by whales who held TRX for 3-5 years. This suggests that whales who participated in the 2021-2022 bullish wave are now cashing out. Such an environment has the potential to put pressure on Tron’s price in the near future.