"WLFI was trading at $0.08, a roughly 82% drop from its all-time high last September when it traded at $0.46. The drop coincides with news that Corey Caplan, the CTO of World Liberty Financial, used the project's reserve of WLFI tokens to make loans on a third-party crypto platform he co-founded."
"Roughly 5% of WLFI's supply is now collateral on Dolomite, so if WLFI declines significantly in value, the collateral could be liquidated. This would likely force World Liberty to sell WLFI tokens to repay the loan, exerting additional downward pressure on the token's price."
"World Liberty Financial acknowledged its lending activities in a post to its X account but tried to quell investor worries, asserting that its loan positions are 'nowhere near liquidation.'"
WLFI, the native token of World Liberty Financial, fell to an all-time low of $0.08, an 82% decrease from its previous high. The decline followed reports that CTO Corey Caplan used WLFI tokens for loans on Dolomite, a decentralized platform he co-founded. Approximately 5% of WLFI's supply is collateral on Dolomite, posing a risk of liquidation if WLFI's value drops further. World Liberty Financial acknowledged the loans but reassured investors that their positions are not close to liquidation, claiming to be the 'anchor borrower' for WLFI.
Read at Fortune
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