- Justin Sun wallets bought $33 million in LIT increasing control above 5% of supply.
- Sun used liquidity program deposits and market purchases to secure a large LIT stake quickly.
- LIT faced early price drops but Lighter reported strong trading volume and platform fee growth.
Justin Sun-linked wallets have quietly amassed approximately $33 million worth of LIT tokens to own over 5% of the circulating supply.
According to blockchain evidence, these purchases happened soon after Lighter had been introduced in the token market on December 30, which points to a strong initial investment in the ecosystem. The accumulation appears tied to liquidity provisioning rather than attempts to farm airdrops, reflecting coordinated market activity.
Wallet Activity Following Token Launch
Analysis reveals that four wallets associated with Justin Sun each received around 1.6 million LIT tokens shortly after the token generation event. The combined total of 6.4 million LIT was valued at approximately $17 million at the time. Funding occurred between thirty-four and fifty minutes after the airdrop allocation form closed, and there is no evidence of participation in earlier points farming programs.
This timing suggests that the wallets were used to secure liquidity positions rather than to exploit user rewards. The structure and rapid activity underline the role of large investors in shaping early market distribution for the new token. Additionally, in September, WLFI froze Justin Sun’s wallet holding $3B in tokens after $9M was moved to HTX.
Liquidity Program Deposits and Market Purchases
Further data shows that Justin Sun deposited nearly $200 million into Lighter’s Liquidity Provider Program. Later, he withdrew about $38 million from that program, allocating approximately $33 million to purchase 13.25 million additional LIT tokens on the open market. In total, the wallets hold around 14.89 million LIT, worth roughly $39.8 million, representing about 5.32% of circulating supply and 1.33% of the total supply.
Meanwhile, around $5.5 million remains in spot balances linked to the same cluster. This sequence of deposits, withdrawals, and market buys indicates a deliberate approach to consolidating a meaningful stake while supporting platform liquidity.
Signs of Broader Liquidity Participation
Data also hints that similar arrangements may exist for other large Liquidity Provider Program participants. One wallet that deposited $50 million USDC roughly a month earlier received 874,875 LIT, although attribution is less clear due to indirect transfers.
Even so, these patterns suggest that major participants are aligning incentives with liquidity contributions rather than short-term airdrop profits. Observers continue to track these deposits closely, as large positions could influence token price stability and governance dynamics in the coming months.
Token Structure and Early Market Response
LIT launched with a 25% airdrop to early users and liquidity providers, pushing the circulating supply to roughly 250 million tokens. The remaining supply is split evenly between insiders and the ecosystem, with investors holding 24% and the team controlling 26%. Both allocations are locked for one year before vesting linearly over three years. The token captures value through fee recycling, buybacks, staking, governance, and access to advanced features.
Since launch, LIT has faced selling pressure from liquidity withdrawals and post-airdrop profit-taking. Prices opened near $3.40 but fell about 30% before stabilizing between $2.45 and $2.80. Despite volatility, Lighter reported $3.7 billion in 30-day trading volume and roughly $101 million in annualized fees, showing sustained platform usage.
