Trump-Linked WLFI Crashes To Record Low After $150M Borrowing Raises Red Flags

• Trump-backed World Liberty Financial fell to an all-time low on Saturday, trading around $0.077.
• The drop followed earlier lending activity, where Arkham flagged that wallets linked to World Liberty Financial had used its own tokens as collateral to borrow about $150 million in USD Coin.
• Arkham noted that over $406 million worth of World Liberty Financial tokens was supplied as collateral across two wallets, representing nearly 5% of the total supply.

Donald Trump-backed World Liberty Financial (WLFI) fell to an all-time low on Saturday, as data showed continued pressure following recent lending activity tied to the project’s wallets.

World Liberty Financial's price fell more than 2% over the past 24 hours after hitting an all-time low of $0.77 on Saturday. This marked an 85% decline from its peak in September last year. On Stocktwits, the retail sentiment around WLFI remained in the ‘bullish’ zone, while chatter levels around it remained ‘extremely high’ over the past day.

The downturn came a day after Arkham Intelligence flagged that wallets linked to the World Liberty Financial team had deposited large amounts of tokens on Dolomite, a decentralized lending protocol that allows users to borrow stablecoins against crypto collateral. According to Arkham, the team borrowed roughly $150 million in USD Coin (USDC) against roughly $400 million worth of its own token. 

Arkham also noted that about $406.23 million worth of WLFI had been supplied across two wallets, representing 4.99% of the total supply and nearly 97.8% of WLFI collateral on Dolomite.

WLFI Defends Lending Strategy Amid Market Concerns

World Liberty Financial addressed concerns around its lending activity on Thursday, saying that its positions remained well above liquidation thresholds.

WLFI described itself as an “anchor borrower” on WLFI Markets, explaining that it supplied its own tokens as collateral to borrow stablecoins, a strategy that helps generate yield for users. The Trump-linked crypto venture added that even in the event of market volatility, it could post additional collateral to maintain its positions.

The team also said the approach was central to how its ecosystem functioned, pushing back against fear, uncertainty, and doubt, popularly called “FUD” around its lending activity.

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