World Liberty Token Crashes to $0.79 All-Time Low After ₱4.5 billion ($75 million) Loan
World Liberty Financial used 5 billion WLFI tokens as collateral to borrow ₱4.5 billion ($75 million) in stablecoins through the Dolomite protocol, sparking immediate backlash from critics who called the move reckless.
Key Takeaway
Borrowing against your own token while planning to unlock more supply is a recipe for liquidation panic.
CoinDesk first reported the collateral transaction on Thursday, when WLFI traded at $0.93. World Liberty Financial confirmed the move, triggering immediate backlash from critics who called the move reckless.
The token fell 13% the next day to $0.79, its lowest price ever and more than 75% below its all-time high. World Liberty Financial dismissed the criticism as FUD in a statement on X, saying the company was nowhere near liquidation and would simply supply more collateral if markets moved against it.
The crash came as World Liberty announced plans to let WLFI holders vote on unlocking tokens for retail early purchasers. The company clarified the vote would cover a long-term vesting schedule, not an immediate full unlock, and described it as a phased approach designed for the ecosystem's long-term health. World Liberty Financial adviser Dolomite protocol founder Corey Caplan has not publicly commented on the collateral strategy.
President Trump and family members own around 38% equity in World Liberty. The firm has generated at least ₱83.92 billion ($1.4 billion) for the Trump and Witkoff families since November 2024, with 75% of WLFI token sales flowing directly to a Trump entity.
Trading for WLFI began in September 2025 after investors voted in July to make the tokens tradable. The token vote on the unlock schedule will occur within weeks, though the Dolomite protocol used for the transaction demonstrates the risks of collateralizing project-issued assets.
This article was written based on reporting from Dlnews.
