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🚨 WLFI Token Crashes Amid DeFi Drama
The governance token of WLFI plunged nearly 15%, hitting fresh lows as a major controversy rocked the DeFi space.
🔍 What happened?
Reports revealed that World Liberty Financial used its own WLFI tokens as collateral to borrow tens of millions in stablecoins on the Dolomite platform—a protocol linked to one of its own advisors, raising serious conflict-of-interest concerns. �
Unchained +1
⚠️ Why investors panicked:
A large portion of WLFI supply was locked as collateral, increasing liquidation risk
Thin market liquidity means forced selling could trigger a sharp price collapse
Concerns over insider lending and circular token economics intensified �
Dailyhunt +1
📉 Market reaction:
After the news broke, WLFI’s price dropped around 15% in a single day, extending its broader downtrend and wiping significant value from the token. �
Fortune
🗣️ Project response:
The team denied any immediate liquidation danger, claiming they can add more collateral if needed—but skepticism remains high among traders. �#SamAltmanSpeaksOutAfterAllegedAttack #HighestCPISince2022 #CZonTBPNInterview