The Unraveling of Trump-Backed DeFi Platform WLFI: Selling ETH at a Loss

Recent data from blockchain intelligence firm Lookonchain has shed light on a concerning trend – wallets associated with World Liberty Financial (WLFI), a decentralized finance (DeFi) platform backed by former President Donald Trump, are selling Ethereum (ETH) at a loss.

Questionable Decisions by WLFI

According to Lookonchain, it appears that WLFI has initiated the sale of a portion of its substantial ETH holdings at a loss. The data indicates that a wallet linked to WLFI sold 5,471 ETH (equivalent to $8.01 million) at a price of $1,465. This move has raised eyebrows as WLFI had previously purchased 67,498 ETH for $210 million at an average price of $3,259, resulting in a considerable loss of $125 million.

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Source: Lookonchain/X

The Origins of WLFI

WLFI was launched by Trump late last year with the promise of aiding individuals marginalized by traditional banking institutions. However, the recent actions of selling ETH at a loss have raised concerns about the platform’s financial decisions.

Market Turmoil and Whales

As the crypto market experiences a downturn, Lookonchain highlights that large investors, known as whales, are also offloading significant amounts of Solana (SOL) alongside ETH. Some whales are even unstaking their SOL holdings to facilitate these massive sell-offs.

For example, one whale recently unstaked 159,028 SOL ($16.5 million) and sold 60,000 SOL ($6.13 million), while another sold 89,734 SOL ($9.67 million). These actions contribute to the downward pressure on SOL’s price.

Current Market Conditions

At the time of writing, ETH is trading at $1,487, reflecting a 2.5% loss in value over the day. Conversely, SOL is valued at $106, with a slight decrease within the last 24 hours.

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