FOMO Ends In Pain: WLFI Whales Suffer Millions In Loses On Price Collapse | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure World Liberty Financial’s WLFI token tumbled this week, leaving big holders nursing heavy losses and some traders counting gains from the other side of the trade.

Related Reading: Ethereum Smart Contracts Become Latest Hiding Spot For MalwareA major wallet closed a 3x leveraged long and took a more than $1.6 million hit. That same investor, according to on-chain trackers, a had turned a $915,000 profit on an earlier trade hours before re-entering the market.

###Whales Face Heavy Losses

Several large accounts were shown deep in the red. Wallet 854RaR, which had bought about $2 million in WLFI earlier in the week, was down roughly $650,000 by Thursday.

On Hyperliquid, wallet 0x1527 carried unrealized losses exceeding $2.2 million on a leveraged position. At the same time, some traders profited: wallet 0x92bb reportedly made $1.8 million from a short position.

Public figures also felt the sting. Reports said influencer Andrew Tate was liquidated for $67,500 on a Hyperliquid long position.

As the sages would say, all this boils down to one big lesson: never be in FOMO (fear of missing out).

###Price Action And Volume Tell A Story

WLFI’s price slide accelerated after the token’s public debut. Coingecko data shows the token dropped 15% in 24 hours as of Thursday noon and is down 38% since its launch on Monday.

The token briefly traded at $0.329 at debut before slipping to just over $0.22. Reports indicate more than $1 billion in trading volume was recorded in the first hour after launch, with prices generally hovering between $0.23 and $0.31 during that initial frenzy.

Market moves were sharp and fast. Some traders entered, some left, and liquidity quickly widened the swings.

WLFIUSD trading at $0.166 on the 24-hour chart: TradingView

####Burn Campaign Did Little To Help

World Liberty Financial sent 47 million WLFI tokens to a verified burn address on Wednesday in a bid to calm markets.

That amount equals about 0.16% of the circulating supply, which stands at close to 25 billion tokens of an original 100 billion supply.

Based on reports, the burn did not stop the slide. Investors continued to sell, and sentiment went colder. The number was significant on paper, but it was small relative to the token’s free-floating supply and the volume that hit the market.

Related Reading: Crypto Lender Execs Head To Prison After Fraud Conviction####Sentiment Shifts Rapidly

Trackers ranked WLFI as the ninth-most-bearish asset among the top 100 cryptocurrencies, with nearly 30% of holders showing negative sentiment.

That shift came almost immediately after the token’s debut and the volatile trades that followed.

Market watchers note how quickly hype can flip into caution when large holders pull back or get liquidated.

Short sellers, meanwhile, are taking profits while supporters scramble to protect positions.

Featured image from Meta, chart from TradingView

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