Crypto Whales Suffer Massive Losses as Trump-Linked WLFI Token Plunges 40% Following 47M Token Burn

By: crypto insight|2025/09/04 23:30:01
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Key Insights into WLFI’s Turbulent Ride

Imagine jumping into a high-stakes poker game where the cards seem promising at first, only to watch your chips vanish in a brutal downturn—that’s the harsh reality for big investors, or crypto whales, who dove headfirst into the Trump family’s World Liberty Financial (WLFI) token. These heavy hitters have been reeling from sharp declines, with the token dropping 40% from its debut price on Monday, leaving millions in losses scattered across the blockchain.

Picture one particular whale, tied to the wallet address 0x432, who boldly opened a 3X leveraged long position on WLFI and held it for almost 64 hours before closing it at 8:02 AM UTC on Thursday. As shared in a post from blockchain analytics tool Onchain Lens, this move led to a pre-fee profit and loss shortfall of about $1.63 million, plus fees around $2,667, resulting in a net hit of nearly $1.64 million. It’s a stark reminder that fear of missing out, or FOMO, can turn excitement into regret faster than a market crash.

Since hitting the scene, WLFI’s price chart has mirrored a classic descending triangle formation, a pattern that often signals trouble ahead, before it shattered its support level at $0.20 amid intense selling pressure. The token has plummeted over 60% from its peak of $0.46, showing no strong hints of bouncing back above $0.30 anytime soon.

Whale’s String of Setbacks with Trump Tokens

This isn’t the first rodeo for that same wallet owner. Back on September 1, they kicked off a long bet on the TRUMP token that lasted nearly 21 hours, ending in a pre-fee loss of roughly $76,400 and a net drain of about $80,220. Later that afternoon, a quick five-minute WLFI long position stung them for around $4,720 before fees, netting a loss of approximately $4,790. Undeterred, they tried another bullish WLFI play at 2:03 PM, holding for over three hours and facing pre-fee damages of about $21,380, with net losses close to $21,812. An even shorter WLFI long at 6:11 AM cost about $3,284 pre-fee, or roughly $3,510 after everything.

Data from Hyperdash reveals their final push with TRUMP involved a short ETH trade at 2:52 AM, erasing $135 before fees and nearly $311 net, followed by a long on August 31 at 7:17 PM that wiped out about $1,672 pre-fee and $1,861 net. It’s like watching a gambler chase losses at the casino, only here the stakes are digital and the house edge feels relentless.

WLFI started public trading on Monday, surging as high as $0.40 in pre-market futures buzz, but it swiftly cooled to around $0.24 by late afternoon. In the following day, it shed another 12% to about $0.246. As of this writing on September 4, 2025, at 15:24 UTC, WLFI is hovering near $0.182, down more than 20% in the past 24 hours, and it touched an all-time low of about $0.174 during Thursday’s pre-market sessions in the US.

Token Burn Fails to Spark Recovery

In a move that aimed to tighten supply and potentially boost value, World Liberty Financial executed a burn of 47 million WLFI tokens yesterday, worth over $11 million at the time, by dispatching them to addresses from which they can’t be recovered. This strategy, often compared to removing excess inventory to drive up demand in a store, was meant to promote holding and elevate prices. Yet, it didn’t stem the bleeding—WLFI kept sliding into the next day, scraping near its bottom despite the reduced circulation.

Even celebrities aren’t immune. Former kickboxing star and influencer Andrew Tate jumped into a WLFI long via the decentralized exchange Hyperliquid, only to see it liquidated on Tuesday for a $67,500 loss. He doubled down with another position, racking up nearly $700,000 in total WLFI trading defeats. It’s a vivid example of how even bold personalities can get burned in crypto’s volatile arena.

Trump’s Stake Remains a Bright Spot

Amid the investor pain, the launch looks like a win on paper for the Trump family. Donald Trump reportedly controls 15.75 billion WLFI tokens, pegging his holdings at around $3.4 billion as of now, making it the biggest slice of his fortune. Together with his sons’ shares, the family commands just under 25% of the 100 billion total supply, valued at an estimated $5 billion at current rates. This alignment with the Trump brand—rooted in themes of financial liberty and bold entrepreneurship—highlights how WLFI positions itself as more than just a token; it’s a statement of economic empowerment, resonating with supporters who see it as an extension of Trump’s vision for decentralized finance.

For those navigating these choppy crypto waters, platforms like WEEX stand out as a reliable choice. WEEX offers secure, user-friendly trading with advanced tools that help investors manage risks effectively, backed by robust security features and a commitment to transparency that builds trust in every transaction.

Latest Buzz and Updates on WLFI

Diving deeper, recent online chatter reveals WLFI dominating searches on Google, with users frequently asking about “WLFI token price prediction” and “Is WLFI a good investment?”—queries spiking amid the dip, reflecting widespread curiosity and concern. On Twitter, discussions are ablaze with topics like #WLFIcrash and #TrumpCrypto, where users debate the token’s ties to political figures and its potential recovery. A notable tweet from Onchain Lens on September 4, 2025, highlighted the whale’s massive loss, garnering thousands of retweets and fueling debates on market manipulation.

Official announcements from World Liberty Financial emphasize the burn’s intent to foster scarcity, but as of today, September 4, 2025, the token’s value hasn’t rebounded, with trading volume down 15% from yesterday’s levels according to on-chain data. Comparisons to past tokens like those linked to celebrities show WLFI’s drop isn’t unique—think of how some meme coins soar then crash—but evidence from blockchain trackers like Etherscan confirms the burn’s execution, with 47 million tokens indeed sent to dead addresses, reducing supply by about 0.47%.

This saga underscores crypto’s highs and lows, much like a rollercoaster where the thrill comes with real risks, backed by real data showing over 60% value erosion since launch.

FAQ

What caused the recent dip in WLFI’s price?

The WLFI token’s 40% decline stems from heavy selling after its debut, forming a descending triangle pattern that broke support at $0.20, despite a 47 million token burn aimed at boosting scarcity.

Is WLFI connected to Donald Trump, and how does it affect its value?

Yes, WLFI is linked to the Trump family, with Donald Trump holding a significant stake worth billions. This brand alignment adds a layer of political intrigue, but market forces like selling volume have driven the price down regardless.

Should I invest in WLFI amid these losses?

Investing in WLFI carries high risks, as shown by whale losses exceeding millions. Always conduct independent research and consider volatility, with current prices at $0.182 reflecting ongoing declines as of September 4, 2025.

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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us

Original Title: Against Citrini7Original Author: John Loeber, ResearcherOriginal Translation: Ismay, BlockBeats


Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.


The following is the original content:


Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.


Never Underestimate "Institutional Inertia"


In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.


When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."


Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.


A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.


I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.


The Software Industry Has "Infinite Demand" for Labor


Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.


But everyone overlooks one thing: the current state of these software products is simply terrible.


I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.


From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.


Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.


I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.


This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.


Redemption of "Reindustrialization"


Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.


But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.


As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.


We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.


We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.


Towards Abundance


The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.


My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.


At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.


If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.


Source: Original Post Link


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