Folks, today Little K is going to expose a magical reality drama—WLFI, a DeFi project endorsed by the Trump family, recently went on a massive ETH sell-off, with a huge loss of 125 million dollars! Is this action a sign of panic or is there a bigger strategy behind it? Today, Little K will uncover this wave of chaotic moves!
1. WLFI cutting losses on ETH: 125 million dollars in unrealized losses, is it truly unable to hold on?
First, let's see how severe this operation is:
Buying price: 3,259 dollars/ETH (spending 210 million dollars)
Selling price: 1,465 dollars/ETH (loss of 55%!)
Current holdings: still have 62,000 ETH left, if it drops further, you'll be in the red!
Little K's sharp commentary:
This is 'belief collapse' in real-time! Even projects from the Trump family can't withstand ETH's decline, what can ordinary investors do?
2. Why did WLFI suddenly cut losses? Four possible reasons!
1. Stop-loss and run away:
ETH has dropped significantly, if you don't stop-loss, you might be left with nothing!
But they only sold 8 million dollars, clearly testing the market!
2. Cash flow crisis:
Although WLFI raised 590 million, operational costs are like a flowing river, they may not have money to pay salaries!
3. Strategic reallocation:
Secretly shifting to RWA (Real Asset Tokenization)? Partners like Ondo Finance have already revealed hints!
4. Political pressure:
The controversial model of the Trump family’s 75% profit has been targeted, selling ETH to shift attention?
Little K's sharp commentary:
The most likely scenario is a 'stop-loss + portfolio adjustment' combo! But if ETH continues to drop, WLFI might completely liquidate and run away!
3. Has ETH's fundamentals collapsed? The rise of Layer2 has become a 'value vampire'!
WLFI's sell-off of ETH is not an isolated case, big holders are collectively bearish on ETH, the reasons are very real:
Active addresses stagnating: no growth for 4 years, no new users coming, old users are leaving!
Layer2 strikes back at the mainnet: Gas fees plummeted by 70%, ETH burn decreased, the deflation narrative has collapsed!
Institutions are bearish:
Standard Chartered Bank lowers ETH target price to 4000 dollars
CoinShares claims 'Ethereum upgrades are too slow, institutions dare not buy'
Little K's sharp commentary:
ETH is now like a 'washed-up star', Layer2 is stealing the spotlight, new public chains are eyeing it, if they don't make some big moves soon, it will really be over!
4. Will WLFI continue to sell? It depends on three key points!
1. ETH price:
Below 1400 dollars? It may continue to cut losses!
Will it rebound to 1800 dollars? Perhaps pause the sell-off!
2. Internal strategy:
If they fully shift to RWA, ETH might be completely liquidated!
3. Trump's policies:
If there are positive developments in Q2, WLFI might pretend to experience a 'revival of belief'!
Little K predicts:
Short-term: Another sell-off of 5000-10000 ETH (approximately 7.3 million to 14.65 million dollars)
Long-term: If ETH doesn't recover, WLFI might completely abandon Ethereum!
5. What should retail investors do? Little K will show you the way!
✅ Short-term players:
Pay attention to WLFI's next sell-off, avoid catching falling knives!
✅ Long-term holders:
Beware of ETH fundamental risks, don't blindly believe!
✅ Onlookers:
Keep a close eye on the Trump family's movements, the intersection of politics + crypto is ripe for harvesting!
Finally, the soul-searching question:
Do you think WLFI's recent sell-off is 'panic selling' or 'hidden intentions'? Can Ethereum bounce back? Let's see in the comments!
(PS: Forward this article, remind your friends not to be cut by big holders!)