LIT, the native token of Lighter DEX, fell over 16% as it dropped from $1.38 to $1.15 after Justin Sun, TRON's founder, withdrew $152 million from the platform's liquidity pool. This withdrawal accounted for 18% of Lighter's total USDC TVL, sparking bearish sentiment among traders and leading to a sharp sell-off.
Data from Artemis highlighted a significant $155.1 million in net outflows from Lighter DEX on March 5, marking the second-highest daily outflow since October. Despite the market reaction, Sun assured the community that the withdrawal was part of a wallet rebalancing and that the funds would be redeposited soon. Notably, major LIT holders did not participate in the sell-off, indicating that retail and leveraged traders primarily drove the decline.
LIT Token Plummets 16% Following Justin Sun's $152M Withdrawal
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