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.
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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.
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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.
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