Key Insights: World Liberty Financial (WLFI), linked to the Trump family, is under heavy selling pressure. Its stock has plunged 20% in just one week. Massive seeKey Insights: World Liberty Financial (WLFI), linked to the Trump family, is under heavy selling pressure. Its stock has plunged 20% in just one week. Massive see

Trump Crypto WLFI Token Crashes 20% In A Week, Massive Whale Dumping

2026/04/12 04:27
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Key Insights:

  • World Liberty Financial borrowed $150 million USDC against $400 million WLFI tokens.
  • This drew criticism over lending risks despite liquidation assurances.
  • Justin Sun’s frozen WLFI holdings fell over $11 million, with total losses exceeding $80 million.

World Liberty Financial (WLFI), linked to the Trump family, is under heavy selling pressure. Its stock has plunged 20% in just one week.

Massive see-off in the Trump crypto comes as it faces strong criticism over the project’s lending and borrowing positions. Whale activity has peaked to a 7-week high, amid strong exchange outflows of WLFI.

WLFI Token On A Freefall This Week

The WLFI token has faced a crushing downfall, uprooting 20% of its value in the last 24 hours. Santiment’s blockchain analytics flagged unusual whale activity and rising exchange outflows during WLFI’s sharp decline.

These signals suggest large holders may be moving funds off exchanges amid the sell-off.

WLFI token whale activity | Source: SantimentWLFI token whale activity | Source: Santiment

According to Santiment, the decline coincided with a seven-week high in whale transactions. On Friday alone, the network recorded 87 transfers valued at over $100,000. This signals increased large holder activity.

At the same time, World Liberty Financial saw net exchange balance outflows of 56.31 million tokens. Rising outflows typically indicate that investors are moving assets off exchanges. It indicates signs of accumulation or reduced immediate selling pressure.

WLFI Token Faces the Heat of Lending and Borrowing

Arkham Intelligence data shows WLFI borrowed $150 million in USDC. The loan was backed by $400 million worth of WLFI tokens on Dolomite. The WLFI team has supplied $406.23 million worth of tokens across two wallets.

This represents 4.99 percent of the total WLFI supply and 97.8 percent of the platform’s WLFI lending cap on Dolomite. The borrowed funds are being used to maintain liquidity and support platform operations.

WLFI token borrowing Dolomite | Source: Arkham IntelligenceWLFI token borrowing Dolomite | Source: Arkham Intelligence

World Liberty Financial addressed investor concerns regarding its lending strategy. It noted that the project operates as both a supplier and borrower. The firm explained that it uses its native token as collateral to secure stablecoin loans while managing liquidity.

The company stressed that WLFI faces no immediate liquidation risk. It also said more collateral could be added if needed to keep the system stable.

World Liberty Financial also reported that its USD1 product generates approximately $159.5 million in annualized income. To further strengthen investor confidence, the firm announced plans to repurchase more than $65 million in WLFI tokens.

However, the crypto community members have expressed displeasure over this development. Crypto enthusiast Brian Krassenstein said:

Justin Sun’s WLFI Token Losses Extend

Justin Sun, founder of Tron, saw his frozen WLFI holdings lose over $11 million in value on Friday. The sharp decline highlights the broader pressure facing World Liberty Financial tokens. This comes as the WLFI price has been on a freefall recently.

Sun initially invested $30 million in World Liberty Financial in late 2024, ahead of the token’s trading debut the following year. He later expanded his exposure, accumulating approximately $75 million worth of WLFI tokens. Sun also committed $100 million to TRUMP memecoin.

World Liberty Financial blacklisted a wallet linked to Sun last year after it moved roughly $9 million worth of WLFI tokens. The action effectively froze the holdings, preventing transfers or sales.

According to Bubblemaps, Sun’s frozen holdings of approximately 545 million WLFI tokens are currently valued at around $45 million. The analytics firm noted that the position has declined by more than $80 million from earlier valuations.

The post Trump Crypto WLFI Token Crashes 20% In A Week, Massive Whale Dumping appeared first on The Market Periodical.

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