Recently, Justin Sun, the founder of TRON and a well-known figure in the cryptocurrency space, sparked heated discussions on the X platform due to his team's address dispersion operations related to WFLI (Wrapped FLi token). On September 5, 2025, at 7:34 AM, Justin Sun released a statement on X, claiming that his team only conducted low-amount exchange recharge tests and address dispersion operations, without any buying or selling, and that it would not impact the market. However, this statement not only failed to quell community doubts but also led to greater controversy due to a lack of transparency and issues such as withdrawal delays on Huobi (HTX). This article aims to objectively present the full picture of the event based on Justin Sun's statement, related posts on X, and online information, including the background of the event, the content of the statement, community reactions (including new dissenting opinions), and potential impacts.
Event Background
As an emerging crypto asset, WFLI has recently attracted attention due to its presale and listing plans on exchanges like MEXC and Huobi (HTX). According to online information, WFLI is a Wrapped FLi token aimed at asset tokenization through blockchain technology, and its presale and perpetual contract trading have drawn many speculators. In August 2025, WFLI launched perpetual contracts on exchanges like Binance, Bybit, and Huobi, with prices plummeting from $0.55 to $0.22, reflecting high volatility and heightened market sentiment.
Justin Sun, as the founder of TRON and the actual controller of HTX (formerly Huobi), often draws market attention with his operations. Previously, he faced controversy over the USDD stablecoin project (accused of mimicking the failed TerraUSD) and allegations of TRX market manipulation (the SEC sued him in 2023, but the case was dropped in February 2025). In the WFLI incident, Justin Sun's statement attempted to clarify the nature of his team's operations, but the community raised strong doubts regarding its transparency and the withdrawal delays from Huobi.
Content of Justin Sun's Statement
On September 5, 2025, at 7:34 AM, Justin Sun released a statement on the X platform in response to speculation about his team's WFLI operations:
“Our addresses only conducted a few general exchange recharge tests with very low amounts, and then we performed an address dispersion, without any buying or selling, which cannot have any impact on the market.”
Key Points of the Statement:
Low Amount Recharge Tests: Justin Sun stated that his team only conducted small recharge tests, with amounts being negligible, possibly to verify exchange functionality or asset transfer processes.
Address Dispersion Operations: The team dispersed WFLI assets across multiple addresses, claiming it was for technical testing or security management, without involving buying or selling.
No Market Impact: He emphasized that the operations would not affect WFLI's price or liquidity, attempting to dispel market concerns about "manipulating" prices.
Additionally, Justin Sun expressed optimism about WFLI in other posts on X, stating that it might replace Binance's FDUSD stablecoin position (as quoted by @Michael_Liu93). He also warned about market manipulation risks associated with the XCN project, calling for exchanges to strengthen monitoring (January 24, 2025, ChainCatcher), indirectly indicating his concern for market fairness.
Community Reactions on X Platform
Justin Sun's statement sparked intense discussions on the X platform, with polarized views from the community, where supporters and skeptics clashed. The following is a summary of reactions based on X posts and user-provided information, including new dissenting opinions:
Supporters' Views
Reasonable Technical Operations: Some users believe that recharge tests and address dispersion are standard operations for new coin listings. @Michael_Liu93 stated, “WFLI has considerable room for future speculation, with the minimum outcome being to replace FDUSD.” He believes Justin Sun's involvement could bring liquidity support to WFLI, attracting more exchanges' attention.
IDO Potential: @butaidongjiaoyi analyzed that the price for WFLI's second round of IDO (Initial DEX Offering) is $0.05, with an initial unlock of 20% and a total market cap of $25 billion, suggesting that investors could quickly recoup their investments, implying that Justin Sun's operations are to warm up the project, aligning with market logic.
Skeptics' Views
Lack of Transparency: @Vida_BWE questioned the statement's lack of specific data support: “Are you brave enough to publicly disclose the initial holding addresses? What exactly is the low amount of the tests? Who would believe without data?” He pointed out that WFLI's price of $0.42 (corresponding to a $42 billion FDV) far exceeds ENA (with an $11 billion FDV), making its public offering attributes unlikely to attract institutional buying, suspecting that Justin Sun is concealing the scale of operations.
Withdrawal Delay Issues: @CryptoWatcher88 complained about the withdrawal efficiency on Huobi: “I’ve been waiting half an hour for my WFLI withdrawal from Huobi, why hasn’t it arrived? The exchange is so large, yet the system is so slow, and the statement doesn’t explain the withdrawal issue. Is it a deliberate delay?” This viewpoint was widely shared on the X platform, reflecting user dissatisfaction with Huobi's operations.
Manipulation Suspicions: @0xcryptowizard analyzed the WFLI sector, acknowledging its advantages in both Chinese and English communities but questioning the high price and the community's activity level compared to Solana/Base's meme coins. He stated, “Address dispersion sounds like money laundering; does Justin Sun dare to publicly disclose the on-chain transaction records? Not disclosing means he is guilty.” This viewpoint echoed the community's general concerns about transparency.
Historical Trust Issues: @BlockchainSkeptic mentioned Justin Sun's past controversies: “USDD and TRX have both involved fund commingling; the SEC has sued him before, and now WFLI is doing the same? Publicly disclose the initial addresses and transaction hashes, or who would dare to invest?” He cited a Protos report, pointing out that the USDD reserve address controlled by Justin Sun (TZ1SsapyhKNWaVLca6P2qgVzkHTdk6nkXa) also appeared in HTX reserves, questioning the transparency of his fund management.
Market Sentiment and Dynamics
Price Volatility: After the launch of WFLI contracts, the price dropped from $0.55 to $0.22, reflecting heightened speculative sentiment. Huobi launched the WFLI/USDT perpetual contract on August 27, offering 1-5x leverage and a $10,000 prize pool (Bitget), but withdrawal delays exacerbated user dissatisfaction.
Community Division: WFLI is viewed as a "public vehicle" (dominated by retail investors), with low institutional participation. @Domingo_gou stated, “WFLI faces significant short-term selling pressure, and Justin Sun's statement seems more like crisis management, failing to conceal the suspicion of operational opacity.”
Potential Impacts of the Event
Justin Sun's WFLI statement and its fallout on the X platform have had multiple impacts on the market and the community:
Market Trust and Transparency:
Justin Sun's statement attempted to dispel manipulation concerns, but the lack of disclosure regarding the initial holding addresses, test amounts, or on-chain transaction records made it difficult to quell doubts. New community calls (such as “Are you brave enough to publicly disclose the initial holding addresses?”) highlight transparency issues. The crypto market is sensitive to transparency, and lessons from the collapse of TerraUSD (Forbes, 2022) have kept investors wary of Justin Sun's operations.
The withdrawal delay issues on Huobi (“WFLI hasn’t arrived after half an hour”) further eroded user trust, potentially leading to retail investor attrition and impacting WFLI's liquidity.
WFLI Price and Liquidity:
The high valuation of WFLI ($0.42 corresponding to a $42 billion FDV) has been questioned by the community, with high price volatility risks. The presale and leveraged trading on exchanges like Huobi and MEXC attract speculators, but withdrawal delays may exacerbate selling pressure.
Justin Sun's optimistic remarks (such as replacing FDUSD) may boost confidence in the short term, but long-term stability requires more institutional support.
Justin Sun's Industry Influence:
As a KOL in the crypto space, Justin Sun's statements significantly impact market sentiment. However, past controversies (such as USDD fund commingling and SEC lawsuits) have damaged his credibility. The WFLI incident may further amplify discussions about trust in him.
His discussion with James Wynn on X Space (involving high leverage risks, Blockchain.news) indicates his attempt to repair his image through public dialogue, but skeptics believe this may be a distraction.
Regulatory and Compliance Concerns:
Justin Sun previously reported XCN manipulation to the SEC and DOJ (ChainCatcher, 2025), showing his concern for compliance. However, the opacity of WFLI operations may attract regulatory scrutiny, especially against the backdrop of tightening virtual asset regulations in Hong Kong (referencing Hong Kong's RWA policy).
The withdrawal delay issues on Huobi may trigger user complaints, increasing compliance pressure on the platform.
From a first-principles perspective, the WFLI incident reflects the typical challenges of new coin listings: project teams need to attract attention through testing and promotion, but any operation may be magnified as a suspicion of "manipulation." Justin Sun's statement, lacking on-chain data support, struggles to eliminate community doubts, particularly in the following areas:
Transparency: Publicly disclosing the initial holding addresses, test amounts, and transaction hashes is key to rebuilding trust. The community's question, “Are you brave enough to publicly disclose the initial holding addresses?” directly addresses the core issue.
Exchange Operations: The withdrawal delays on Huobi (“hasn’t arrived after half an hour”) reflect platform system efficiency issues, possibly related to high trading volumes or technical bottlenecks, requiring prompt optimization.
Market Positioning: WFLI needs to balance retail and institutional participation, enhancing community activity to counter competition from meme coins (such as those in the Solana/Base ecosystem).
In the future, WFLI's development depends on:
Improved Transparency: Justin Sun needs to publicly disclose on-chain data to address community concerns regarding initial addresses and transaction records.
Exchange Support: Huobi must resolve withdrawal delay issues and optimize user experience; more exchanges (like Binance and Bybit) listing WFLI could enhance liquidity.
Regulatory Compliance: Hong Kong's stablecoin and RWA policies provide compliance opportunities for WFLI, but opening the secondary market will take time, and Justin Sun must ensure operations meet regulatory requirements.
Community Building: WFLI's bilingual community is an advantage, but it needs to enhance activity through airdrops, governance, and other mechanisms to avoid retail selling pressure.
Conclusion
Justin Sun's statement regarding the address dispersion of WFLI attempted to clarify the nature of the operations, but the lack of disclosure regarding initial holding addresses, test amounts, and on-chain records has led to strong community skepticism. New dissenting voices (such as “Are you brave enough to publicly disclose the initial holding addresses?” and “Huobi hasn’t processed my WFLI withdrawal for half an hour”) highlight transparency and exchange efficiency issues. As an emerging token, WFLI faces price volatility, liquidity challenges, and a trust crisis. Justin Sun's industry influence makes his statements highly scrutinized, but more transparent operations are needed to address community concerns. Investors should pay attention to on-chain data (which can be verified through CoinGecko and Dune Analytics), exchange announcements, and regulatory developments, remaining cautious of high-leverage trading risks. The future performance of WFLI requires more institutional support and community building, warranting continued observation.
Disclaimer: This article is based on posts from the X platform, user-provided information, and online materials, for reference only, and does not constitute investment advice. The cryptocurrency market is highly volatile; investments should be made cautiously, and it is recommended to consult official announcements and on-chain data for accurate information.
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