Despite a 47M token burn, investor sentiment turns bearish on WLFI
The World Liberty Financial (WLFI) token, a cryptocurrency tied to the Trump family brand, has seen a steep decline of more than 40% since its launch, leaving major investors — or whales — with millions in losses.
Whales face heavy liquidations
Blockchain data revealed that one whale wallet, 0x432, lost over $1.6 million after closing a leveraged long position on WLFI. According to Onchain Lens, the trader had just exited an earlier position with a $915,000 profit before jumping back in — only to be wiped out.
“The moral of the story: never be in FOMO,” Onchain Lens commented on X, pointing to the dangers of chasing quick profits in volatile token launches.
Other whales followed suit, cutting their positions at a loss, signaling waning confidence in the Trump-affiliated asset.
On Wednesday, the WLFI platform conducted a burn of 47 million tokens, permanently reducing supply in an attempt to boost market value. However, the move failed to stabilize prices.
Losses pile up for investors
Other wallets tracked by Lookonchain also reported significant losses. Whale 854RaR, who bought $2 million worth of WLFI, was down more than $650,000 by Thursday. Another trader, 0x1527, was sitting on a $2.2 million loss from a leveraged position.
Not all bets went sour. Trader 0x92bb profited $1.8 million by shorting WLFI, effectively betting against the token’s success.
Meanwhile, Andrew Tate, the controversial influencer and former kickboxing champion, also wagered on WLFI’s rise but was liquidated for $67,500 earlier this week on decentralized exchange Hyperliquid.
The rapid selloff pushed WLFI into the top 10 most bearish tokens by investor sentiment, according to CoinMarketCap. Nearly 32% of investors are now bearish, ranking the token ninth among the 100 largest cryptocurrencies.
With whales exiting positions and burn mechanics failing to slow losses, WLFI faces an uphill battle to regain investor confidence.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.