Liquidity shock? LIT drops 16% after Justin Sun pu
Liquidity shock? LIT drops 16% after Justin Sun pulls funds from Lighter
LIT, the native token of Lighter DEX, shed over 16% of its value into the weekend.
The token slipped from $1.38 to a record low of $1.15. The decline followed reports that Justin Sun, the founder of TRON, had withdrawn $40 million from the DEX’s liquidity pool.
According to an on-chain analyst, MLM, Sun withdrew $40.76 million from Lighter LLP on Thursday during the U.S trading session.
The analyst noted that Sun collectively removed a total of $152 million from the trading platform. This represented 18% of Lighter’s total USDC TVL (total locked value). In response, traders expressed bearish views about the move. This was evidenced by LIT’s sharp sell-of
A deeper look into the Lighter DEX reinforced the analyst’s findings, with Artemis data flagging a whopping $155.1 million in net outflows on 05 March.
This was the second-highest daily outflow from Lighter after the 10 October crash, which saw $179 million in outflows.
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