2026-4-11 20:44 |
World Liberty Financial (WLFI) has come under intense market pressure following a sharp selloff tied to two major developments: a controversial $75 million borrowing position backed by WLFI tokens and a governance proposal to introduce a phased token unlock for early holders.
The combination of leverage concerns and potential future supply expansion has triggered a strong negative reaction in the market, pushing the token deeper into a sustained downtrend.
On April 10 at press time, the WLFI token was trading around $0.0809, down roughly 14% in the past 24 hours.
WLFI price chart | Source: CoingeckoThe altcoin is now hovering close to its all-time low of approximately $0.0801, raising concerns about the project’s viability.
$75 million loan raises concerns over systemic riskA key driver behind the recent selloff is WLFI’s decision to borrow approximately $75 million in stablecoins by posting a large portion of its own WLFI tokens as collateral on a decentralised lending platform.
Reports indicate that around 5 billion WLFI tokens were deposited as backing for the loan, effectively linking the project’s balance sheet directly to the market value of its own token.
This structure has raised concerns among traders and analysts because it creates direct exposure between WLFI’s price performance and its financial obligations.
If the token price continues to fall, the value of the collateral weakens, increasing the risk of undercollateralization and potential liquidation pressure.
Adding to the controversy is the fact that the lending protocol involved has ties to individuals connected to the WLFI ecosystem.
This has fueled criticism over potential conflicts of interest and has intensified fears of a “circular” financial structure, where the token, liquidity source, and lending mechanism are closely interconnected.
Market participants have largely interpreted the move as a form of liquidity extraction without direct token sales.
However, rather than calming sentiment, the strategy appears to have heightened concerns about long-term stability and risk management within the WLFI treasury.
WLFI token unlock proposal adds fears of future supply pressureAlongside the loan-related concerns, WLFI is also facing renewed pressure from an upcoming governance proposal that would introduce a phased unlock schedule for early investors.
Instead of releasing tokens in a single event, the proposal outlines a structured approach where allocations would be gradually unlocked over time.
https://twitter.com/worldlibertyfi/status/2042366935329853762?s=20While phased unlocks are typically designed to reduce immediate market shocks, traders are focusing on the broader implications: a potential increase in circulating supply in an already fragile market environment.
Approximately 75% of WLFI’s total 100 billion token supply remains locked or subject to governance decisions, meaning future unlocks could significantly alter market dynamics depending on how they are structured.
The uncertainty surrounding timing and scale has contributed to preemptive selling.
Market data shows a sharp rise in trading activity, with 24-hour volume surging well above recent averages, suggesting that holders are actively reducing exposure ahead of the governance vote.
WLFI price forecastIn the short term, WLFI’s price outlook remains closely tied to a narrow set of technical levels and upcoming governance developments.
Immediate support is located around $0.079, a level that has recently been tested as selling pressure intensified.
A sustained hold above this zone could allow for short-term consolidation, potentially stabilising price action after the recent decline.
However, a decisive breakdown below $0.079 would likely expose the next downside area near $0.070, where traders may look for deeper support.
Such a move would also reinforce bearish momentum, particularly if accompanied by continued high trading volume.
On the upside, recovery efforts would need to reclaim the $0.085 level to signal any meaningful shift in short-term sentiment.
A break above this resistance would be the first indication that buyers are regaining control, although broader uncertainty around the unlock vote and treasury-related leverage may continue to cap upside momentum.
For now, WLFI remains in a structurally fragile position.
Price direction in the coming sessions will likely depend less on technical bounce attempts and more on how the market resolves uncertainty around token unlock implementation and the implications of the project’s collateralised borrowing strategy.
The post WLFI token price plunges on $75M loan, token unlock plan appeared first on Invezz
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