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

▲ Donald Trump, Justin Sun, Trump Coin (TRUMP), WLFI/AI Generated Image ©

Trump-related cryptocurrencies saw a surge in trading volume due to a single lawsuit issue, creating a typical volatile market where short-term speculative funds quickly poured in and then exited.

According to crypto 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 TRON founder Justin Sun. WLFI claimed that Sun damaged the project's reputation through organized media attacks and emphasized 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 previously filed a lawsuit in California federal court in August last year, alleging that WLFI froze his token holdings and revoked his governance rights. As the clash between the two sides resurfaced, market attention was drawn.

As a result, the WLFI token price rose to $0.06232 during intraday trading, increasing by approximately 10% on a daily basis, and its 24-hour trading volume surged by over 43%. Notably, this rebound occurred after the token recorded an all-time low due to controversy surrounding the private sale of 5.9 billion tokens to private investors, indicating that short-term events 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. While trading volumes surged by 15% and 110% respectively, the upward trend did not last long, reversing to a decline of about 1%.

Finbold commented on this trend, stating that “the high-profile dispute stimulated short-term liquidity, but it did not lead to sustained gains.” The market continues to react sensitively to news-driven volatility, and it was reaffirmed that sharp surges occurring without actual improvements in supply and demand can quickly reverse.

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