WLFI Plunges 20%: Unlock Floodgates Open as Whales Trigger Market Panic

WLFI investors watch in horror as the token nosedives 20% overnight—unlock events meet massive whale sell-offs in perfect storm conditions.

The Great Unlocking

Token unlocks hit the market like tidal waves, flooding circulation with fresh supply just as whales decided to cash out their positions. The timing couldn't have been worse for retail holders.

Whale Exodus Accelerates

Major holders dumped positions simultaneously, creating cascading sell pressure that shattered support levels. Panic spread faster than a blockchain fork as smaller investors scrambled to exit.

Market Psychology Turns Toxic

Fear becomes the dominant market sentiment as traders watch their portfolios bleed red. The classic crypto cycle repeats—greed gives way to fear, and fear gives way to capitulation.

Just another Tuesday in decentralized finance—where your investment can lose a fifth of its value before your morning coffee gets cold. The only thing more volatile than the charts? Trader emotions when the whales start moving.

Why did the WLFI token price collapse?

Several catalysts contributed to the steep decline of the WLFI token. The most likely explanation is the lingering effects of early WLFI unlocks. Notably, the project unlocked 20% of all presale tokens on September 1, the same day that trading started.

This contributed to an explosion of liquidity, and many early investors sold. However, not all were so lucky, as the token launch was embroiled in a controversy with one of its biggest backers, Justin Sun. Sun, who has close business ties with World Liberty Financial, said that the WLFI team froze his tokens, which eroded trust in the project.

WLFI also sold 100 million tokens to Bitcoin mining firm Hut 8 for $25 million on October 4. While the transaction was relatively minor compared to the token’s $3.6 billion market cap, it might have contributed to fears of insider selling.