Whales lose millions on Trump-linked WLFI’s 40% dip, despite 47M burn

12 hours ago 1

Big crypto investors, or whales, were suffering millions in losses on the Trump family-linked World Liberty Financial (WLFI) token, which continued to decline despite a proposal to reduce the circulating supply.

Whale wallet 0x432 lost more than $1.6 million after closing a 3x leveraged WLFI long position, according to Onchain Lens.

“The moral of the story: never be in FOMO,” short for fear of missing out, wrote the platform in a Thursday X post, referencing the whale’s hasty investment move.

The investor had opened a second long position on the WLFI token just 15 hours after closing a previous one with a $915,000 profit, only to lose the $1.6 million.

Confidence in Trump-linked token weakens

Other whales were also exiting WLFI positions at a loss, signaling waning confidence in the Trump-affiliated token’s price outlook.

The whale selling came a day after the WLFI platform burned 47 million tokens on Wednesday, permanently removing them in a bid to tighten supply and boost the value of the remaining tokens.

The token burn was not enough to stop its post-launch decline, as the WLFI price fell another 18% in the 24 hours leading up to 8:31 am UTC Thursday, marking a total decline of 41% since it was launched on Monday, according to CoinMarketCap data.

Whales, crypto traders lose millions on WLFI price decline, as investor sentiment sours

Other large investors also incurred losses, including whale wallet 854RaR, which bought $2 million worth of WLFI tokens three days earlier and was down over $650,000 as of Thursday, according to blockchain data platform Lookonchain’s X post.

Another wallet on Hyperliquid, trader 0x1527, was down over $2.2 million on a WLFI long position, while trader 0x92bb managed to profit $1.8 million on a short position, which is a de facto bet on the WLFI token’s price decline, added Lookonchain in a Thursday X post.

Former kickboxing champion and controversial influencer Andrew Tate was also betting on the WLFI token’s price appreciation, despite being liquidated for $67,500 on Tuesday via decentralized exchange Hyperliquid, Cointelegraph reported.

The over 40% decline saw investor sentiment sour around the WLFI token during the previous 24 hours.

The WLFI token is currently the ninth-most-bearish token among the 100 largest cryptocurrencies by investor sentiment, with 31.9% of its users bearish about the token’s prospects, CoinMarketCap data shows.