Is WLFI following in the footsteps of LUNA? ⚠️
The project has just confirmed:
👉 Using the WLFI token as collateral to borrow money.
It sounds normal, but the problem lies in the fact:
If it is about to be liquidated… they can print more WLFI to compensate.
Does that sound familiar?
This mechanism easily creates a loop:
Price drops
→ weak collateral
→ must pump more tokens
→ gets diluted
→ selling pressure increases
→ price drops again
And it keeps repeating.
Currently, the market cap is still a few billion dollars,
so if something happens… it won't just be WLFI that is affected.
#wlf