Controversial influencer and ex-kickboxer Andrew Tate has just experienced an unfortunate turn of events in the unpredictable cryptocurrency market.
His long position on the Trump-family backed World Liberty Financial (WLFI) token was liquidated for an overall loss of $67,500 on decentralized exchange Hyperliquid.
The liquidation happened on Tuesday, just one day after WLFI was listed on exchanges.
Despite the loss, Tate wasted no time in opening another long position on WLFI, indicating he still believed the project had upside.
Losses Pile Up After Previous YZY Token Misstep
This new liquidation adds to Tate’s list of crypto trading frustrations. Less than two weeks earlier, Tate suffered major losses on Kanye West’s YZY token when his 3x leveraged short position was completely wiped out, UnoCrypto reported.
Based on blockchain data platform Lookonchain, Tate’s net losses on Hyperliquid are now approaching $700,000 in total, across different unsuccessful positions.
His repeated errors signal the danger of leveraging highly volatile celebrity-related tokens, which often will quickly move against even accomplished traders.
Also Read: World Liberty Joins Digital-Asset Treasury Boom With Plan For $1.5B WLFI Holding Company
WLFI Token’s Rocky Market Debut
The WLFI token, linked to the Trump family, had a rocky experience on its initial trading day. Following its Monday listing, the token reached a high of $0.331 before dropping 36% to $0.210.
As of earlier today, WLFI price was recovering, priced at $0.2353, although it was still down over 21% from its issuance price, according to Coingecko data.
One of the main contributors to the volatility was the release of the token, where an additional 24.6 billion WLFI were added to the market.
This essentially doubled the Trump family’s holdings, valued at $5 billion, and created additional concerns over market dilution.
Also Read: ALT5 SIGMA Announces Major $1.5B Private Placement To Purchase Trump-Backed WLFI Tokens
Founders’ Allocations and Governance Dynamics
World Liberty Financial reported that the first allocations of WLFI for founders, including U.S. President Donald Trump and his sons, Donald Trump Jr., Eric Trump, and Barron Trump, are locked.
This is designed to give some comfort to investors, ensuring that the founders cannot quickly sell their tokens.
While it is a positive step, the price of the token is already under downward pressure, and large unlocks also raise apprehension about long-term investor confidence and whether the project can sustain momentum in the crowded DeFi space.
WLFI Proposes Buyback and Burn to Stabilize Token
In light of the recent decline, the WLFI platform floated a governance proposal to allow a buyback and burn program for the WLFI token, UnoCrypto reported.
The proposal suggested that the protocol use all of the fees it collects across Ethereum, BNB Chain, and Solana to repurchase WLFI tokens from the market and permanently burn them.
Such mechanisms are commonly used to combine supply decrease and upward price pressure.
Initial feedback is that there is strong community support; however, there are no clear indications of the scope of fees generated, making it difficult to measure the substance of the proposal.
Whether this measure will restore investor confidence and stabilize the price of WLFI is uncertain as the project continues to move forward from this rocky start.