WLFI plunges to new all-time low as voting backs 2-year token lock
World Liberty Financial (WLFI) has crashed to a new all-time low, down about 16% in 24 hours to roughly $0.06. The broader market saw only minor weakness, but WLFI significantly underperformed.
The drop follows a DeFi governance vote that started April 29 and runs until May 6. The proposal covers more than 62 billion WLFI tokens and, if approved, would lock them for at least two years, reducing near-term liquidity. The plan also specifies allocations for insiders: founders/team/partners could move up to 45.2B WLFI into a new two-year lock, with up to 4.5B WLFI potentially burned, while early supporters could shift up to 17B into the same lock with no burn. Reported participation support is extremely high at around 99.94%.
WLFI’s sell-off is amplified by additional controversy. Its association with Donald Trump’s circle has triggered backlash on social media, with claims that Trump-linked tokens such as TRUMP and MELANIA are down over 90% since launch.
Separately, Tron founder Justin Sun has filed a lawsuit alleging WLFI team members froze his tokens, removed voting rights, and threatened to burn his holdings. Reports also tied a WLFI partner entity (“AB”) to an alleged international fraud syndicate.
For traders, the combination of ATL pricing, large WLFI lock mechanics, and ongoing legal/PR risk raises short-term downside tail risk around the voting window.
Bearish
WLFI is trading at a fresh ATL after a sharp 24-hour drop, showing weak immediate demand. Even though the governance vote may reduce circulating supply via a 2-year WLFI token lock, the reported insider allocations and the extreme social backlash tied to Trump-linked branding are currently driving sentiment and selling pressure more than any potential supply effect. On top of that, the Justin Sun lawsuit (alleging token freezes, voting-right removal, and threatened burning) and reports of a partner linked to alleged fraud increase legal and reputational uncertainty. Near the voting window and amid active headlines, these factors can sustain volatility and downside pressure for WLFI specifically.