💥$WLFI Why is it dropping?
First, liquidity is constrained:
Currently, both Coinbase and Upbit do not have pre-market contracts, and the main liquidity across the network is only on Binance. The price is more of an emotional speculation and can only realistically be referenced at 40%.
Second is the operational level of Trump's team.
Behind Trump is a team that understands financial play the best; they know hedging better than retail investors. Don't think only retail investors hedge risks; they must be hedging in the $50~70 range extensively, then unlocking and closing positions along the way.
Suddenly releasing negative news about Melania tokens in the middle of the night is precisely to cooperate with a pre-arranged short position, targeting retail investors.
Although the tokens from this public offering haven't been unlocked, Trump's team's selling logic must be: wait for a price increase, and wait for sufficient liquidity to concentrate on hedging; otherwise, they won't be able to execute their large orders at all.
Currently, Binance Wlfi's daily trading volume is only around 1 billion, which simply cannot accommodate Trump's team's hedging demands, so their hedging actions have likely not fully unfolded yet.
💥Follow-up actions:
When the market drops to extreme positions, it may actually present an opportunity for low buying and going long.
