In a notable market shift, whales have lost significant capital on Trump family-backed World Liberty Financial’s WLFI token as its price plunged dramatically. Since its launch price, the token has lost more than 40% of its value, costing investors millions who got caught up in the fear of missing out (FOMO) on early hype.
Blockchain data tracker firm, Onchain Lens, noted that an investor took a loss of $1.635 million while going long on WLFI perpetuals, trying to catch profits on upside potential of the token.
The trader previously made a profit of $915,000 on a WLFI long trade but took the loss after reentering the market because of FOMO.
Another leveraged long trader lost $2.2 million on Hyperliquid, while a short seller made $1.8 million in profits. Besides perpetuals, a spot trader purchased $2 million worth of WLFI at $0.27, resulting in a loss of over $650,000. These outcomes stress that bets based on early hype don’t pay off very often when the fundamentals are weak.
The market barely noticed the 47 million token burn that was meant to support the price upside. Instead, WLFI experienced an additional 18% decline the very next day, resulting in a price drop to approximately $0.23.
At the time of writing, the price of WlFI is $0.1784, which is lower by 19.37% compared to yesterday, with a total volume of $1.71 billion, according to CoinMarketCap data.
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