President Donald Trump is backed by crypto venture World Liberty Financial (WLFI) faced a lot of criticism after the authority’s proposal to devalue its tokens was unanimously approved.
The price of WLFI fell by 23.01% in the last seven days, trading at about $0.0599 on April 30. The center of the altcoin cap saw its market value drop by $247 million on Thursday, with the token hovering around $1.9 billion at press time.
WLFI’s bearish sentiment was boosted by the recent approval to open 62.3 billion shares that were previously closed. By reporting time, a an idea it got 99.93% approval and cleared its tally with 739%, with six days left to vote.
In the middle of the election, WLFI recorded 15 whaling incidents in 4 hours on April 29, the highest in two weeks, according to the chain. data from Saint.
WLFI is facing financial difficulties
The WLFI token has faced increasing criticism from investors due to its tokenomics. For example, Justin Sun, founder of Tron (The value of TRX), recently filed a lawsuit in federal court in California against World Liberty Financial.
Sun claimed that World Liberty Financial had wrongly frozen his WLFI tokens, thereby preventing him from voting on the project’s proposals. In addition, he rejected the latest proposal because it stated that investors who do not accept his statement will have their tokens locked forever.
Meanwhile, the World Liberty Financial group has also been criticized for using WLFI tokens to obtain collateral loans where previous investors failed. In fact, the World Liberty Financial group used 5 billion tokens as collateral for the Dolomite loan program and borrowed $ 75 million in Stablecoins, such as Finbold. he explained. Later, the group invested more than $40 million of the money it borrowed from Coinbase Prime, thus raising the alarm among investors.
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