Finance — Investing

Dramatic decline in value: Trump-backed cryptocurrency Whale (WLFI) experiences 40% plummet in price

Despite an initial loss of tokens, the whale's substantial investment in the market led to a steep decline, fueled by excessive hype in promotional campaigns.

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2025 September 13 . 8:46 PM

2 min read

Massive Financial Loss for Whales: Trump-Linked Cryptocurrency WLFI Drops by 40%

Dramatic decline in value: Trump-backed cryptocurrency Whale (WLFI) experiences 40% plummet in price

In the world of cryptocurrency, the WLFI market has been a subject of interest for many investors. However, a series of recent events has shed light on the high volatility and risk associated with this digital asset.

The stark contrast between long and short leveraged positions in WLFI is noteworthy. A long position opened on Hyperliquid resulted in a loss of $2.2 million, while a short position made a $1.8 million profit. This demonstrates the unpredictable nature of WLFI investments, where gains can just as easily turn into losses.

One of the most notable losses was suffered by a whale investor with the wallet address 0x432. This investor turned a $915,000 long position into a $1.6 million loss in just hours. This significant loss exemplifies the high volatility and risk involved with WLFI investments.

The losses in the WLFI market mirror high-profile crashes in the cryptocurrency world, such as Terra (May 2022), FTX (bankruptcy news), and Dogecoin. Whales' large, leveraged positions are a gamble, not a strategy, and their losses can have a ripple effect on the market.

Another instance of a whale's loss was when another investor bought 2 million dollars worth of WLFI at $0.27 and is already down by over $650,000. This serves as a reminder that FOMO-driven investments rarely provide solid foundations.

The psychology of whale losses can impact retail investors, who may assume that big money always knows best. However, size does not protect against market downturns. This assumption isn't always true, as whales face the same risks, just on a larger scale.

Moreover, mechanisms like token burns can influence short-term sentiment but can't replace actual usage or revenue. WLFI burned only 0.19% of its total supply, which is virtually negligible in terms of impact on the market. Token burns can be effective only when coupled with genuine adoption.

The market responded accordingly, and the price of WLFI continued to drop. The next day, the price dropped another 18%, bringing its price down to around $0.23. This drop in price serves as a reminder that the cryptocurrency market is unpredictable and volatile, and investors should be cautious when making decisions.

Investor sentiment can quickly reverse, making it challenging to reverse course with quick crashes. When the market crashes, losses accumulate rapidly, regardless of wallet size. Hype-driven projects like WLFI can end in loss, despite token buybacks.

In conclusion, the WLFI market serves as a lesson for investors to be cautious and to conduct thorough research before investing. The high volatility and risk associated with WLFI investments highlight the importance of understanding the market before making decisions.