World Liberty Financial Drops 4.23% Despite Token Burn, Whales Face Losses

World Liberty Financial's latest price was $0.1798, down 4.23% in the last 24 hours. The token, which is linked to the Trump family, saw a sharp decline post-launch despite a 47 million token burn aimed at reducing the circulating supply and bolstering its value. This decline was driven by heavy selling pressure from leveraged positions, short-term profit-taking, and overall market re-rating. Large investors, or whales, reported substantial losses. For instance, whale wallet 0x432 closed a 3x leveraged WLFI long position and lost more than $1.6 million after reopening a fresh long 15 hours later. Multiple other large holders also exited positions at losses, indicating deteriorating short-term confidence in the token. Despite these losses, approximately 60% of the 85,000+ pre-sale participants remained holders, suggesting substantial retail conviction despite the price weakness.

The token burn, which involved the permanent removal of 47 million tokens, did not halt the post-launch decline. This highlights the challenges of relying solely on supply reduction to support price in the face of significant selling pressure and leveraged positions. The derivatives market for WLFI shows elevated participation, with trade volume increasing and open interest growing. This increase suggests that more jobs are being added than taken away, leading to additional activity in the market. Long/short ratios indicate mixed sentiment, with the overall 24-hour ratio balanced. However, some exchanges show heavily long ratios, indicating that retail traders are betting on a rebound despite the prevailing bearish trend. Top traders remain more measured, with positions closer to balance. This positioning suggests that experienced participants are preparing for both upward and downward movements while avoiding overexposure. Liquidation figures show continued turbulence, with positions cleared in the past 24 hours. Long liquidations accounted for a significant amount, while shorts recorded a similar amount, reflecting the intense struggle between opposing positions in recent sessions.

Shorter-term liquidations remain notable, including over $300K in the 1-hour window and over $900K over 4 hours on the short side. Such activity suggests rapid price fluctuations and a lack of price stability after the support breakdown. With the $0.15 zone now in focus, traders are monitoring whether liquidity will concentrate near this level. Should selling pressure persist, the $0.10 region may become the next key level of interest for the market. World Liberty Financial (WLFI), a decentralized finance project associated with former U.S. President Donald Trump, has implemented significant security measures since its trading inception. Within the initial week of operations, the project blacklisted over 270 wallet addresses as part of a concerted effort to enhance platform security and prevent potential misuse. This bulk blacklisting action represents a major step in the project's security protocol deployment.

A prominent incident involving these security measures concerns billionaire cryptocurrency investor Justin Sun. Reports emerged that World Liberty Financial froze tokens held in a digital wallet belonging to Sun. The action resulted in the restriction of Sun's holdings within the WLFI ecosystem. In response to the freeze, Sun publicly contested the action, labeling it as "unreasonable." He asserted his commitment to Trump's initiatives, pledging substantial financial support towards assets aligned with Trump's political agenda following the wallet freeze. The dispute between Sun and World Liberty Financial has generated considerable attention within the cryptocurrency community. Sun publicly appealed to the project to reverse the freeze on his specific wallet. This situation highlights ongoing discussions within the sector concerning security practices, governance, and the application of wallet blacklisting mechanisms by DeFi projects. The incident serves as a focal point for broader debates on protocol control and participant rights in decentralized systems.