World Liberty Financial Token Plummets Amid Concerns Over $75 Million Collateralized Loan

WLFI, the native token of the Donald Trump-backed World Liberty Financial platform, has fallen to an all-time low following reports of aggressive borrowing strategies. The token touched approximately $0.07714 on Saturday, representing an 83% decline from its September peak of $0.46. The price slump was triggered by on-chain data showing that wallets associated with the project deposited roughly 5 billion WLFI tokens as collateral on Dolomite, a decentralized lending platform. This collateral was used to borrow $75 million in USDC and USD1 stablecoins, with over $40 million subsequently transferred to Coinbase Prime. DeFi analysts have raised alarms regarding the project's $10 billion fully diluted valuation (FDV) relative to its actual liquidity. Critics argue that if the token price continues to slide toward liquidation levels, the forced sale of 5% of the total supply could trigger a severe downward spiral in value. World Liberty Financial defended the move on social media, characterizing itself as an 'anchor borrower' and stating that the strategy is designed to generate yield for users. The project maintained that its current positions remain safely above liquidation thresholds. In a separate development, the project announced a forthcoming governance proposal to implement a phased unlock schedule for early retail buyers, replacing immediate access with a long-term vesting plan subject to a community vote.