Trump's Crypto Project Unlocks Its Unpopularity: WLFI Drops 14% as $427M Vanishes

World Liberty Financial's governance token plumbed fresh depths on Friday after the Trump-backed crypto venture hinted it was sketching out a proposal to unlock WLFI for early adopters—while also mounting a defense of $150 million in stablecoin loans. Because apparently, when you're already underwater, the smart play is to keep borrowing.

The token, which initially launched as a non-transferable digital asset last year, was changing hands around $0.08, down 14% over the past 24 hours, per CoinGecko. WLFI's market cap hemorrhaged $427 million, dropping to $2.58 billion from nearly $3 billion. That's not a dip—it's a statement.

On Thursday, World Liberty pushed back against what it labeled "FUD"—crypto-speak for "fear, uncertainty, and doubt"—that spread across X after the project tapped decentralized finance protocol Dolomite for USDC-denominated loans. Onlookers grew increasingly paranoid that Dolomite's users could face losses or liquidity nightmares if World Liberty's loans got liquidated, given WLFI's tissue-paper-thin liquidity. Some zeroed in on Dolomite's USD1 lending pool, noting borrowing seemed increasingly squeezed as utilization for World Liberty's stablecoin position grew uncomfortably elevated. Nothing says confidence like watching utilization percentages tick higher while you mentally calculate your