Analyzing the KOL and Media Misreporting of the Trump Family WLFI Liquidation of $B Tokens: How Misinformation Disrupts the Market?
According to On-Chain Data, Whale 0x26aeaf50b8595729fcb9e72836ed7e2adb853c74 Liquidated $B Tokens on the Evening of the 23rd
This event, however, was misrepresented by some media outlets and KOLs as being the Trump family’s DeFi project, World Liberty Fi, liquidating $B tokens. This led to a decline of approximately 14% in the $B token within one hour at 19:00 UTC+8 on the 23rd. However, the community quickly realized that the claim regarding WLFI’s liquidation was false, and the price subsequently rebounded.
BNB Chain’s Conspiracy: $B Collaborates with WLFI to Break $100 Million Market Value
$B (BUILDon) was launched in April on Four.meme, marketed as a mascot for building the BNB ecosystem. Initially, it did not garner much attention, but experienced players on the chain soon discovered that this coin was fundamentally a conspiracy on the BNB chain. On May 15, BUILDon officially announced the addition of the $B/$USD1 trading pair. From this point, the narrative of $B officially transformed into the first meme coin collaborating with $USD1, followed by BUILDon co-hosting a trading competition with a prize pool of $200,000 for $USD1.
On May 22, World Liberty Fi’s official Twitter account announced plans to purchase $B tokens. The address tagged as WLFI on Arkham also held approximately 630,000 $B tokens. This news caused the price of $B to surge by 271% in a short period.
False News of Trump Project’s Liquidation of $B Spreads Rapidly
One hour after WLFI purchased $B, the address 0x26aeaf50b8595729fcb9e72836ed7e2adb853c74 bought 3.32 million $B tokens. However, when this address liquidated its $B tokens on the evening of the 23rd, some media and KOLs falsely reported that it was the Trump family’s DeFi project, World Liberty Fi, conducting the liquidation.
From on-chain records, there is no financial overlap between the two addresses, making it difficult to link them together. For KOLs or media, the value of breaking news lies in its speed. However, for those disseminating the information, verifying the accuracy of the news with the existing data, or what is known as due diligence, remains necessary. After all, spreading rumors is easy, but debunking them can be a strenuous task. KOL Charming stated that most people, including KOLs and news media, essentially exhibit poor verification skills.
He mentioned that when a sudden event occurs, the first thing one should do is to make the corresponding trades (to profit from the crowd’s emotional response), and then immediately seek on-chain data for verification, rather than thoughtlessly sharing unverified information. Misleading oneself is one thing, but misleading others is far worse. It can only be said that one is either foolish or malicious.
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