{"id":149170,"date":"2026-04-10T18:33:26","date_gmt":"2026-04-10T18:33:26","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=149170"},"modified":"2026-04-10T18:33:26","modified_gmt":"2026-04-10T18:33:26","slug":"wlfi-crashes-13-to-all-time-lows-amid-growing-liquidation-fears-for-world-liberty-financial","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=149170","title":{"rendered":"WLFI Crashes 13% To All-Time Lows Amid Growing Liquidation Fears For World Liberty Financial"},"content":{"rendered":"

World Liberty Financial\u2019s WLFI token fell sharply on Friday, dropping about 13% over the past 24 hours to new all-time lows of $0.080. The selloff comes as online reports have focused on the company\u2019s leverage and collateral use, raising new liquidation fears.<\/p>\n

WLFI Backlash Grows\u00a0<\/h2>\n

According to the concerns circulating <\/a>on social media platform X, World Liberty Financial allegedly posted a large WLFI collateral amount\u2014reports claim 5 billion WLFI tokens\u2014and took on borrowing of roughly $75 million in stablecoins through decentralized lender Dolomite.\u00a0<\/p>\n

Those reports also said that more than $40 million connected to the borrowing was sent to Coinbase Prime. Additional commentary around the incident suggested that some portion of the debt had already been partially repaid, while still emphasizing that the overall structure was expected to remain heavily overcollateralized.<\/p>\n

Another factor mentioned by skeptics is that users in the venture\u2019s USD1 stablecoin pools faced withdrawal pressure, and that WLFI\u2019s presence\u2014allegedly dominating more than 50% of Dolomite liquidity\u2014could amplify market stress when prices move quickly.\u00a0<\/p>\n

In this framework, a falling WLFI price reduces collateral safety, which can raise the chance of forced actions later, even if the original plan was designed to avoid straightforward token dumping.<\/p>\n

Governance Plans Announced<\/h2>\n

World Liberty Financial responded to the growing backlash with a fresh statement on Friday, asserting <\/a>it is \u201cone of the largest suppliers and borrowers on WLFI Markets,\u201d confirming that WLFI was supplied as collateral and stablecoins were borrowed, but insisting it is \u201cnowhere near liquidation.\u201d\u00a0<\/p>\n

The statement further claimed that even if markets moved \u201cdramatically\u201d against the company\u2019s position, the response would be to supply more collateral\u2014arguing this is not treated as a risk in the normal operating model, but rather how the system is designed to work when leverage strategies are employed.<\/p>\n

In its defense, World Liberty Financial framed the borrowing position as part of a broader strategy: serving as an anchor borrower to generate yield that, in turn, helps make WLFI Markets attractive to others in the ecosystem.\u00a0<\/p>\n

For early token holders, World Liberty said it plans a governance process. The company stated that a governance proposal to unlock locked tokens will be posted to the forum next week for community input, and that it will proceed to a formal vote shortly after.\u00a0<\/p>\n

Additionally, World Liberty said USD1 includes compliance-grade controls, describing enhanced fund safety tools for frozen funds designed for the regulatory environment ahead. Finally, it claimed the upgrade is seamless, with balances, approvals, and integrations carried over intact\u2014no migration and no disruption.<\/p>\n

World Liberty Financial also aimed at what it described as the \u201cFUD crowd\u201d framing, arguing that critics are looking at the wrong piece of the story and that the project is focused on compounding outcomes over time.<\/p>\n

Featured image from OpenArt, chart from TradingView.com <\/p>","protected":false},"excerpt":{"rendered":"

World Liberty Financial\u2019s WLFI token fell sharply on Friday, dropping about 13% over the past 24 hours to new all-time lows of $0.080. The selloff comes as online reports have focused on the company\u2019s leverage and collateral use, raising new liquidation fears. WLFI Backlash Grows\u00a0 According to the concerns circulating on social media platform X, […]<\/p>\n","protected":false},"author":0,"featured_media":149171,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-149170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/149170"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=149170"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/149170\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/149171"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=149170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=149170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=149170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}