DeFi Wahala: Dough Finance Don Change Im Name To WLFI—$65M Profit, Trump-linked Support, Plus Investor Loss Dem Spark Legal Actions
Dough Finance, one DeFi platform wey dey Florida, collapse for 2024 because one $2.5 million flash-loan attack. Investors dem no get back dia money even though dem promise say dem go compensate. Di founders, Chase Herro and Zak Folkman, comot come bring new DeFi project wey dem call World Liberty Financial (WLFI), and dem connect with Donald Trump family through real estate developer Steve Witkoff. WLFI fast attract $550 million capital and big names support, including Trump wey endorse am and put money inside. But wahala show because 75% of protocol revenue dey go one Trump-linked company, and di founders make at least $65 million profit. Trump still get major control for WLFI with 15.75 billion tokens and big share of revenue, even though e dey shy from direct management. Despite big capital and public figures involvement, di project show say e dey centralized — di governance tokens no fit transfer and revenue dey concentrated — people dey fear say e no really decentralized and investors no dey safe. Lawsuits dey for Dough Finance victims under Florida money transmitter laws, and regulators dey watch well. This one show say wahala go still dey for DeFi, where founders fit change name after dem fail, so make people dey check properly. For crypto traders, dis one na warning say political or celebrity backing no mean say investors go safe, and centralized DeFi protocols still big risk as regulators dey watch tight.
Bearish
Dis news bad for WLFI token and di bigger DeFi sector. Dough Finance collapse plus di rebranding to World Liberty Financial (WLFI) wit big profits for di founders, join wit Trump deep financial involvement and revenue concentration, dey show say fraud, no enough decentralization, and lack of accountability still dey worry for DeFi projects. Legal action from old investors plus increasing regulatory scrutiny dey add more risk to di platform. For traders, dis things go make dem no trust am well and fit cause selling pressure for related tokens, because history show say scandals plus founder recycling usually dey come before price fall and more volatility. Even if big name people dey back am no mean say e sure or say regulators don clear am, e just make market confidence shakier.