Trump-Linked Token Hits Historic Low
WLFI plunges after loan backed by its own tokens raises investor concerns.
The WLFI token, associated with the World Liberty Financial platform—which has ties to U.S. President Donald Trump and his family—has dropped to its lowest level ever recorded. The decline followed revelations that the project used its own tokens as collateral for a loan in stablecoins.
On Saturday, WLFI’s price fell to around $0.079, marking a drop of nearly 70% from its peak.
Investor concerns intensified after it was disclosed that a wallet linked to the project deposited approximately 5 billion WLFI tokens on the Dolomite platform. These tokens were used as collateral to borrow $75 million in stablecoins, specifically USD1 and USDC. Of that amount, more than $40 million was later transferred to Coinbase Prime.
Experts warn that this strategy carries significant risks. If WLFI’s price continues to fall, it could trigger forced liquidation of the collateral. Another issue is the token’s low liquidity—selling large amounts could further drive down its value.
Some commentators have compared the situation to artificially creating value. In their view, it resembles a system where someone mints their own “tokens” and uses them to borrow real money.
World Liberty Financial, however, reassures that the situation is under control. The company claims its collateral levels remain safe and that liquidation is not a concern. It also emphasizes that this strategy enables earnings from stablecoins, particularly at a time when other markets offer limited returns.
The project has also announced upcoming changes for investors. The plan involves gradually unlocking tokens instead of providing immediate access, aiming to spread out selling pressure over time.
