The launch of World Liberty Financial’s WLFI token has been met with a flurry of activity, with early investors quick to take profits as the asset hit the market. According to blockchain analyst Aixpta, around 80% of the top 10 largest holders of WLFI tokens sold off their positions within a day of the token’s release. Only two wallets out of the top ten have yet to move their tokens, indicating a rush to capitalize on early gains.
One notable transaction saw moonmanifest.eth, the largest holder at the time, unlock 200 million WLFI tokens worth nearly $59.5 million. They proceeded to sell 10 million tokens for $2.1 million just five hours later, showcasing the fast-paced nature of the market. Other top holders followed suit, with the sixth-largest wallet selling $3.8 million worth of tokens to multiple buyers through Whales Market.
The swift sell-offs have led to increased volatility in WLFI’s market, with early investors keen to secure profits amidst the uncertainty. However, this rush to sell has also exposed holders to phishing threats, with security experts warning of malicious attacks targeting token claimers. Yu Xian, founder of SlowMist, has highlighted phishing attacks exploiting Ethereum’s EIP-7702 standard to drain wallets of their assets.
One such attack saw a WLFI wallet compromised, with attackers using a malicious contract to siphon off all assets, including ETH meant for gas fees. Xian advises holders to front-run the exploit by paying gas to override the malicious contract, replacing it with a safe one, and moving tokens in the same block through flashbots to protect their assets.
As the market for WLFI continues to evolve, investors are urged to remain vigilant against potential threats and to take proactive measures to safeguard their holdings. With the cryptocurrency space constantly evolving, staying informed and adopting best practices for security is essential to navigate the risks and opportunities inherent in this fast-paced ecosystem.