The WLFI token, associated with World Liberty Financial and linked to Donald Trump, has fallen to an all-time low following concerns about its financial structure.
Reports indicate the project used billions of its own tokens as collateral to secure $75 million in stablecoin loans.
This strategy has raised serious concerns among investors, contributing to a decline of more than 80% from its peak value. Critics highlight the risks of token-backed lending, particularly when internally issued assets are used as collateral.
The situation underscores broader challenges within decentralized finance, emphasizing the importance of transparency, risk management, and sustainable financial practices.
Source: X.com
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