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    Home»Crypto News»Altcoins»WLFI Risks 20% Drop As World Liberty Financial Faces Insider Allegations
    WLFI Risks 20% Drop As World Liberty Financial Faces Insider Allegations
    Altcoins

    WLFI Risks 20% Drop As World Liberty Financial Faces Insider Allegations

    April 15, 20263 Mins Read
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    World Liberty Financial’s WLFI token risks dipping 20% in April, according to a mix of convincing technical and fundamental indicators.

    Key takeaways:

    Bear pennant hints at WLFI dip in April

    As of Tuesday, WLFI was consolidating inside a classic bear flag, a continuation pattern that typically forms after a sharp decline.

    In technical analysis, a bear flag typically resolves when the price breaks below the lower trendline alongside rising trading volumes and falls by as much as the structure’s maximum height.

    aistudios
    WLFI/USDT four-hour chart. Source: TradingView

    Applying this classic rule to WLFI’s chart brings its measured downside target to around $0.066 in April, down about 20% from the current price levels.

    Conversely, a break below the upper trendline risks invalidating the bear flag setup, with the 20-day (green) and 50-day (red) exponential moving averages (EMAs) at around $0.081 and $0.085 serving as primary upside targets.

    Insider activity, token unlock fears add pressure

    Beyond technicals, WLFI faces mounting scrutiny that continues to weigh on sentiment.

    On-chain data from Arkham Intelligence show wallets linked to the project deposited roughly 3–5 billion WLFI tokens—largely illiquid—as collateral on Dolomite to borrow about $75 million in stablecoins, including USD1 and USDC.

    Source: X

    Over $40 million was later moved to Coinbase Prime. The position pushed pool utilization to ~93%, restricting withdrawals and drawing criticism for “circular” liquidity extraction.

    The structure is risky because it uses thinly traded internal tokens to borrow real liquidity, meaning any sharp WLFI price drop could trap depositors, trigger bad debt, and deepen selling pressure.

    Source: X

    At the same time, markets are bracing for a proposed unlock of over 16 billion WLFI tied to still-locked public allocations, raising dilution risks.

    Adding to the pressure, Tron founder Justin Sun, who reportedly invested ~$75 million and became an adviser, again accused WLFI of embedding a hidden backdoor blacklisting function in the smart contract.

    Related: US President Trump faces renewed backlash as Trump-linked tokens crash

    This allegedly allowed the team to unilaterally freeze his wallet/assets without notice or recourse, violating “decentralization” promises.

    He called it a trap, denounced “token scandals,” claimed governance votes were rigged/non-transparent and demanded unlocks/transparency.

    This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no guarantees regarding the accuracy or completeness of the information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.



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