WLFI Continues Downward Spiral Amidst Allegations and Project-Failure Narratives
The cryptocurrency WLFI has experienced a significant decline in value over the past 13 hours, dropping by 3.69 points amidst ongoing selling pressure. According to data from CoinMarketCap, this move is part of an already bearish setup driven by recent allegations and project-failure narratives.
A prominent DeFi analyst posted a detailed thread calling WLFI a 'scam,' citing broken partnership promises and alleged token dumping by the team. The thread highlighted several instances of unfulfilled or changed plans, including Aave integration that 'didn't happen' and using Ethena's sUSDe as collateral that 'didn't happen.' It also alleged WLFI created a 'strategic reserve' and solicited token contributions from external projects, then sold most of those tokens.
The same thread notes WLFI was already down more than 80% with 'no rally despite market recovering,' underscoring that investors perceive this as a structural, not temporary, problem. This backdrop makes even modest negative price drift self-reinforcing, as new buyers are scarce while existing holders look for exit liquidity.
Another thread from a DeFi commentator warns users explicitly not to lend on Dolomite because of WLFI exposure, calling World Liberty Financial 'a very sketchy project.' The post highlights that WLFI is the 2nd biggest collateral on Dolomite, raising the risk that if WLFI collapses further, Dolomite lenders could end up with large amounts of bad debt.