Money Poured In as Lawsuit Broke Out…Trump Coin 'Speculative Market' Warning

▲ Donald Trump, Justin Sun, Trump Coin (TRUMP), WLFI/AI-generated image ©

Trump-related cryptocurrencies experienced a typical volatile market where trading volume surged due to a single lawsuit issue, with short-term speculative funds quickly flowing in and then out.

According to cryptocurrency media outlet Finbold on May 4 (local time), World Liberty Financial (WLFI), a DeFi project associated with the Trump family, filed a defamation lawsuit against Justin Sun, the founder of TRON. WLFI claimed that Sun damaged the project's reputation through organized media attacks, emphasizing that it was "an act that threatens the very trust in DeFi."

This legal dispute is the result of ongoing conflict between the two parties. Justin Sun had previously filed a lawsuit in August last year in a California federal court, alleging that WLFI froze his token holdings and stripped him of governance rights. With the conflict between the two sides resurfacing, market attention was focused.

As a result, the WLFI token price rose to $0.06232 during intraday trading, an increase of approximately 10% on a daily basis, and its 24-hour trading volume surged by over 43%. Notably, this rebound occurred after the token hit an all-time low amid controversy over 5.9 billion tokens being privately sold to private investors, indicating that a short-term event drove the price recovery.

Trump-related memecoins also showed strong volatility. Official Trump (TRUMP) rose to $2.3687 during intraday trading, and Official Melania Meme (MELANIA) climbed to $0.1049. Trading volumes surged by 15% and 110% respectively, but the upward trend did not last long, with prices turning down by about 1% again.

Finbold commented on this trend, stating, "High-profile disputes stimulated short-term liquidity but did not lead to sustained gains." The market continues to react sensitively to news-driven volatility, and it has been confirmed once again that sharp rises occurring without genuine improvements in supply and demand can quickly reverse.

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