Why did WLFI drop so much?
1. Abrupt drop under selling pressure
The WLFI token, linked to the Trump family, experienced a spectacular drop of 40–50% in the first days of trading, sliding from highs of around $0.46 to even $0.18–$0.20, indicating a strong speculative liquidation.
2. Massive selling by whales and closure of leveraged positions
Many large investors, especially those with leveraged positions, tried to capitalize on the initial momentum… only to turn into significant losses when the price began to fall rapidly.
3. Confusion due to excess unlocked supply
It was revealed that the circulating supply was much higher than anticipated by investors (25 billion instead of the expected 5 billion), which generated distrust and selling pressure.
The protocol attempted to correct this by burning 47 million tokens, but it represented less than 0.2% of the total supply, which was considered symbolic and very limited.
4. Bearish sentiment and opening of short bets
Confidence in WLFI quickly evaporated. Indicators showed an increase in short positions and a significant decline in open interest in futures, reflecting a clear bet that the price would continue to drop.
