Whales Lose Millions On Trump-Linked WLFI’s 40% Dip, Despite 47M Burn

The dramatic in the value of World Liberty Financial (WLFI), a token connected to the , has shaken up the cryptocurrency market. WLFI has dropped 41% since its inception on Monday, even though 47 million tokens were burned to lower the supply and raise the value. 

This has caused large investors, or “whales,” to lose a lot of money. This article talks about why WLFI is going down and what that means for large investors.

Token Burn Doesn’t Stop the Decline

On Wednesday, the platform burnt 47 million tokens, which means they are no longer available for use. This makes the supply tighter and the token more valuable. But the burn didn’t stop the token from going down. 

By Thursday, WLFI’s price had dropped another 18% in 24 hours, bringing its total drop to 41% since it first came out. This steady drop shows that the market doesn’t trust the coin, even when people are trying to stabilise it.

 Significant Financial Losses Incurred by Whales

WLFI’s collapse has hit large investors the hardest. For example, whale wallet 0x432 lost more than $1.6 million when it closed a 3x leveraged long position because it was afraid of missing out (FOMO). Another , 854RaR, which bought $2 million worth of WLFI tokens three days earlier, was down more than $650,000. 

Trader 0x1527 lost more than $2.2 million on a WLFI long position on the platform, while trader 0x92bb made $1.8 million by betting against the token’s price. These diverse results show how risky it is to trade with leverage in markets that are constantly changing.

Bearish Investor Sentiment

Investor opinion has made the WLFI coin the ninth-most-bearish primary cryptocurrency. The token’s value fell rapidly later than it was released, and a lot of sold it, which shows that faith in it is fading. The market’s reaction shows that the token burn wasn’t enough to stop the strong tradeing and general doubt in the project.

Key Takeaways From the WLFI Crash 

The WLFI disaster is a warning for anyone who invests in cryptocurrencies. People sometimes make rash choices when they view large projects that are popular, like when investors give in to . The significant losses show how risky it is to trade with fresh tokens and use leverage. To restore investor trust and stabilise the token’s value, the WLFI team may need to take bolder steps in the future, such as more burns or better use cases.