WLFI hits all-time low after securing $75M loan with own tokens

World Liberty Financial (WLFI), a DeFi project associated with the Trump family, has reached an all-time low after it was revealed that the project borrowed $75 million in stablecoins using billions of its own WLFI tokens as collateral, Cointelegraph reported. According to the report, concerns grew among cryptocurrency users after the news broke that the project had taken out a large loan using its native token. This led to a decline in the value of the WLFI token, which hit a record low of approximately $0.07714. This price represents an 83% drop from its peak of $0.46, recorded in September of last year. In response to the spreading controversy, World Liberty Financial explained on X that the liquidation risk for the position is not high and that the loan strategy is beneficial for generating returns. However, this statement appears to have failed to calm market concerns.