Trump’s WLFI Price Hits All-Time Low As Team Secretly Sells 5.9B Tokens
Highlights
- Trump's WLFI is under fire again for quietly selling about 5.9 billion tokens.
- The WLFI crypto price plunged nearly 10% after the sale news came in.
- Currently, more than 33% of the token supply is held by founders and other team members, which was questioned by other holders.
The WLFI token of World Liberty Financial fell to new record lows this week. The WLFI price continued its losses following news about the sale of 5.9 billion tokens worth a whopping $320 million at current rates.
World Liberty Financial Team Sells 5.9 Billion Tokens
The Donald Trump-backed crypto venture, secretly sold billions of other tokens to individuals, per reports. The move led to worries among the market participants regarding transparency and supply.
The WLFI team offloaded nearly 5.9 billion tokens via private deals which were internally termed as “white glove” deals, according to a Bloomberg report. These sales occurred after a previous round of public fundraising which raised more than $550 million.
The new reported sales, however, were not publicly announced to current token holders. These raised questions about disclosure practices as WLFI continues facing the heat after Tron founder Justin Sun filed a lawsuit.
Additional information in the report indicated the way that proceeds of these private placements were dispersed. A large part went to organizations that were connected with the founders of the project.
Disclosures examined by Bloomberg revealed that a Trump-connected entity might get up to 75% of the token sales revenue. Hence, netizens are questioning the project’s financial structure, going as far as to call it a “scam.”
WLFI Price Tumbles To Record Lows
Response in the market was quick. On Friday, WLFI price plummeted by almost 10% to hit a new low of $0.05159 as the news about the sales spread.
Thereafter, the token briefly rebounded but was still under pressure, despite briefly bouncing back to the $0.054 range. At press time, the WLFI crypto price was around $0.05472, down 1.07% on Saturday, May 2.
Earlier, the token dropped over 10% after Trump faced an attack during the White House dinner last weekend.
Meanwhile, data from analytics company Tokenomist.ai indicated massive shifts in token distribution. The allocations that were made as founders, team members and partners also seemed to have gone up. It posed further concerns on how the team is handing the token supply.
The founder and team category by itself hold about 33.5% of total WLFI supply. It’s the highest allocation as of now and market participants are worried about future unlocks or sales. Also the 62 billion WLFI token unlock proposal is attracting criticism.
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