- World Liberty Financial (WLFI) price has witnessed a drop of around 3% on a daily chart, hitting an all-time low at around $0.07525.
- On April 22, TRON’s Justin Sun officially filed lawsuits against World Liberty Financial (WLFI), alleging that a massive extortion and illegal scheme involving assets that have been valued at over $1 billion.
- The cryptocurrency is currently in the oversold territory, but has no catalysts to spark a rebound.
On April 24, World Liberty Financial (WLFI) price suffered a marginal drop of around 3% on the daily chart amid a heavy selling pressure in the DeFi sector.
At the time of writing this, World Liberty Financial WLFI-3.54%is trading at around $0.07506 with a market capitalization of around $2.38 billion, according to CoinMarketCap. The daily trading volume is around $68.84 million after the surge of 22%.
The WLFI token is currently struggling to rebound despite positive sentiment in the overall crypto market after Bitcoin (BTC) soared above $78,000. In the last 30 days, the cryptocurrency has plunged by around 26%, hitting $0.07525.
Justin Sun Sues World Liberty Financial Over Token Freezing
A major legal battle sparked between TRON founder Justin Sun and World Liberty Financial (WLFI). On April 22, Sun filed a lawsuit in California, alleging that a massive extortion and illegal scheme involving assets that have been valued at over $1 billion.
Justin Sun was involved early with World Liberty Financial as an anchor investor and also as an advisor. He invested $45 million into the project at the start. This investment helped make the project look more trustworthy at a time when sales were not going well. But Sun says that after the project became successful, the relationship took an ugly turn. They specifically asked him for another $200 million.
Sun allegedly stated that when he said no to this demand, World Liberty Financial became hostile toward him.
The main issue in the lawsuit is about who owns and controls Sun’s 4 billion WLFI tokens. Sun says that World Liberty Financial took part in several illegal actions. One of those actions is token freezing.
According to him, the company secretly added a backdoor or a blacklisting function into their computer code. This hidden feature allowed them to freeze these tokens. As a result, the token was stopped from selling or trading its own tokens.
Sun Stated in the official post on X, saying that “They wrongfully froze all of my tokens, stripped me of my right to vote on governance proposals, and have threatened to permanently destroy my tokens by “burning” them—all without any proper justification. I do not believe President Trump would condone these actions if he knew about them.”
“I have tried in good faith to resolve this situation with the World Liberty project team without resorting to litigation. But the project team has refused my requests to unfreeze my tokens and restore my rights as a token holder. They have left me with no choice but to turn to the courts,” he added further.
World Liberty Financial Hits New All-Time Low Below $0.07494
The token is still trading well below its 50-day Exponential Moving Average, which is at $0.10. It is also trading below its 100-day EMA at $0.11. The Relative Strength Index (RSI) is now at 26, which suggests that the asset is getting close to the oversold area.
However, it has not yet triggered a strong signal for a price reversal. On top of that, the Moving Average Convergence Divergence (MACD) is remaining stuck in negative territory. But there is a small contraction in the bearish histogram. This suggests that the downward force might be losing some of its early strength.
On-chain data shows that large holders are currently not interested in buying more tokens right now. Also, the funding rate for WLFI futures stays negative without any change.
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