Hold onto your hats, folks, because the crypto rollercoaster just took another wild turn! World Liberty Financial Initiative, or WLFI for short, just hit a bit of a rough patch with a staggering $124 million loss. The main culprit? Ethereum's price slide and a storm of market chaos.
Backed by none other than former US President Donald Trump, WLFI wrapped up its token sale with a whopping $590 million in the bag, catapulting it into the elite club of top 10 token raises of all time. But here's the catch: these WLFI tokens are like VIP passes – only available to accredited investors and locked away from public trading. So, don't expect to see them on your favorite crypto exchange anytime soon!
Launched in September 2024, WLFI's mission is to supercharge decentralized finance (DeFi) and make US dollar-pegged stablecoins the stars of the global market. Their crown jewel? A DeFi lending platform, ready to take the world by storm.
The governance token, WLFI, made its grand entrance on October 15, aiming for a $300 million splash. But alas, demand was more of a gentle ripple, with only $11 million raised from 766 million tokens. In response, they smartly trimmed their sails to a $30 million target.
Interest skyrocketed when Trump-themed meme coins like Official Trump (TRUMP) and Official Melania (MELANIA) hit the scene. By January 20, the token sale wrapped up, with 20% of the supply snapped up. Sensing the buzz, WLFI dropped an extra 5 billion tokens at $0.05 each, which flew off the shelves by March 13.
Token holders will eventually get a say in the WLF Protocol's future, but for now, their tokens are under lock and key for a year.
In the world of big-name investors, Tron’s founder, Justin Sun, made a splash by snapping up $30 million worth of tokens, securing his spot as the top investor.
But, as fate would have it, WLFI's portfolio took a nosedive, shedding $124 million. The biggest bruises came from Wrapped Bitcoin (wBTC), Aave (AAVE), and Tron (TRX), all caught in this week's market whirlwind.
Here's a fun tidbit: WLFI is all-in on Ethereum, with 65% of its holdings tied up in the altcoin. They snagged ETH at an average of $3,240 a pop, but as its price tumbled to around $1,900, their losses started piling up like a bad hair day.
Stay tuned as the crypto world spins with more twists and turns – it's bound to be a thrilling ride!
