WLFI token price drops following sale of treasury tokens by miner Hut8
Over the past 24 hours, the price of the WLFI token fell by 3% to $0.20, despite bullish sentiment in the cryptocurrency market. The decline came just hours after World Liberty Financial announced the sale of treasury tokens to Hut8, a company backed by the family of Donald Trump.
Recently, WLFI sold Hut8 tokens from its treasury at a price of $0.25 each.
“The locked tokens sent from WLFI’s treasury were intended solely for this sale — not for a new issuance or dilution. We value Hut8’s support as a long-term partner,” the WLFI team said.
According to the project team, Hut8 purchased WLFI tokens directly from the treasury reserves at an agreed rate of $0.25. Representatives of World Liberty Financial clarified that the tokens sold were locked reserves, not a new issuance, emphasizing that no dilution occurred.
However, the market reaction was negative: community members questioned why Hut8 would buy tokens at $0.25 when the market price is around $0.20. Others expressed concern that the “locked” reserves could be withdrawn without clearly defined unlocking terms.
Furthermore, on Saturday, WLFI trading volumes increased by 4%, despite a 3% drop in price. This indicates that active selling by existing token holders is outpacing new demand, reinforcing bearish sentiment around the deal.
See also: "Bitcoin: decline after record high, driver — ETF"
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