Coin overview
WLFI
In progress0.2386-0.37%
Last price (USDT)
398.58K
24h total (USDT)
1.36M
Total vol (USDT)
2025-08-23 14:00:00 ~ Pending
Trading time (UTC+0)
Pending
Delivery time (UTC+0)
Total supply100.00B
Resources
Introduction
World Liberty Financial, Inc. is inspired by Donald J. Trump’s vision to pioneer a new era of Decentralized Finance (DeFi), with a mission to democratize financial opportunities and strengthen the US Dollar’s global status through US dollar-based stablecoins and DeFi applications
AAVE Falls Over 5%, Entangled in Another Quandary with WLFI Over '7% Fee Split Dispute'
Original Article Title: "WLFI and AAVE Token Split Proposal Conflict, Will the Resolution End in Vain Again?" Original Article Author: 1912212.eth, Foresight News In the crypto space, "collaboration" is the norm, and "conflict" is no exception. Recently, the market has been paying attention to the dispute between World Liberty Financial (WLFI) and Aave over a coin split proposal. This event stems from a seemingly mutually beneficial DeFi collaboration proposal but has caused a significant stir due to asymmetric information and denial statements, leading to a short-term 8%+ drop in the AAVE token price. WLFI, as an open finance project endorsed by the Trump family, originally intended to leverage Aave's DeFi infrastructure to expand its influence. However, the dispute has exposed a pain point in governance transparency in the crypto ecosystem. Token Split Proposal a Mirage? The WLFI project was launched in 2024 and is driven by members of the Trump family. With a total token supply of 100 billion, WLFI, as a nascent project, previously sought to collaborate with established DeFi protocols to enhance liquidity. Previously, the Aave DAO (Decentralized Autonomous Organization) passed a proposal: WLFI would deploy its platform on Aave V3. In return, the Aave DAO would receive a 20% fee split from the WLFI protocol and be allocated approximately 7% of the WLFI total supply (i.e., 7 billion tokens). This clause was initially seen as a positive development—Aave, as a leading lending protocol, could use this to inject new assets to increase TVL, while WLFI could leverage Aave's user base to accelerate adoption. Fast forward to August 23, Aave founder Stani.eth responded to questions about "Is the WLFI and AAVE protocol still valid? Are they really building on Aave? There are many different rumors" by stating that the protocol is still valid. He prominently retweeted the view that "at the current price, the Aave treasury will receive WLFI worth $25 billion, making it one of the biggest winners in this cycle," calling it an art of the deal. Subsequently, AAVE surged to touch $385. However, soon after, purported WLFI Wallet team member Dylan_0x posted to deny the proposal-related news that "Aave will receive 7% of the total WLFI token supply," leading to a brief 5% drop in AAVE. On August 24, the WLFI team refuted Wu's statement about the "7% token allocation" in relation to blockchain, labeling it as "fake news." The WLFI official stated that while the proposal exists, the distribution terms are not factual, emphasizing that the project's focus is on tokenization innovation rather than external profit sharing. Aave founder Stani.eth responded below his tweet, stating that the proposal created by the WLFI team has been voted on and approved on the Aave DAO, accompanied by the proposal link. As of now, the WLFI official account has not issued a formal response to the matter, leading to diverse opinions in the market. WLFI is set to launch on Ethereum on September 1st, allowing for claiming and trading. Early supporters (0.015 and 0.05 USD rounds) will unlock 20%, with the remaining 80% to be decided by community vote. Tokens for the founding team, advisors, and partners will not unlock. On September 25, according to Bitget quotes, its pre-market price once reached 0.45 USD, resulting in a fully diluted valuation (FDV) of several billion USD, currently dropping to 0.25 USD. AAVE has fallen below 350 USD. Is Governance Just Arithmetic? The DAO governance challenge has persisted from the previous cycle to the present. Aave founder Stani.eth responded, stating that the proposal is still valid, perhaps merely wishful thinking on one side. dForce founder Mindao commented on the matter, remarking that the proposal "seems like it was written by a WLFI intern, nothing like a deal signed by the Trump family. The collaboration between Aave and Spark only offered a 10% revenue share. WLFI, with the Trump brand endorsement, logically should receive some additional benefits from Aave. Even if WLFI was aiming for a public offering at the time, it wouldn't have come up with such unfavorable terms. Later on, with the surge of crypto new policies, WLFI issued USD1, transitioning its narrative directly from 'crypto bank' to 'Aave + Circle,' resulting in a 10x valuation increase. After all, Trump wrote Art of the Deal, and this deal is definitely disgraceful." Additionally, Mindao speculated on the upcoming plot, stating that "WLFI will completely abandon Aave, rendering the previous contract null and void. There will be a massive reduction in token distribution shares. The allocation will be used to incentivize USD1's lending coin minting, it's a win-win situation, effectively serving as an operational subsidy for targeted stablecoin minting." Twitter KOL Laolu expressed that if WLFI does not intend to give AAVE a 7% token, there is no need to be surprised. "SPK defaulted on a 10% yield and ended up giving only 1%, and it all ended in nothing. WLFI said nicely during the public sale that it would be fully unlocked, but now it has changed to partial unlocking." Polygon and Aave Once Had a Similar Drama In December 2024, a conflict erupted between Polygon and Aave due to a Polygon community proposal: to use bridged funds (about $110 million) for yield strategies such as staking rewards. Aave contributor Marc Zeller opposed this, calling it a "risk strategy," and proposed that Aave withdraw Polygon support to prevent fund misuse. Aave even adjusted the parameters of the Polygon lending platform, setting the LTV to 0, meaning that no further borrowing was possible no matter how much was deposited. Polygon founder Sandeep Nailwal accused Aave of "monopolistic behavior" and having a "sour grapes mentality," believing that Aave was attempting to suppress competition to maintain its dominance in the lending market. The conflict escalated to private message threats and public accusations, with Polygon CEO Marc Boiron and Zeller even betting: if Aave withdrew from Polygon, the latter would prove its independence. Eventually, the proposal was adjusted, and Aave did not fully withdraw, but the relationship remained tense. It is worth noting that in April 2021, Polygon (with a market value of about $4 billion) provided $40 million worth of 1% MATIC incentives to Aave (at the time with a market value of about $6.5 billion).
Aave and WLFI Dispute Over Token Allocation Details
Key Points: Aave and WLFI clash over disputed token allocation details. Public denial and clarification attempts. Market turbulence as AAVE price reacts to unfolding events. WLFI and Aave Token Allocation Dispute A dispute has emerged between Aave and WLFI over claims of a 7% token allocation, with conflicting statements from key figures causing market uncertainties. The controversy impacts AAVE’s market stability, triggering token depreciation and raising concerns about transparency and governance within decentralized finance. WLFI and Aave are embroiled in disputes over a token allocation proposal. Claims that Aave will receive 7% of WLFI tokens were publicly denied by WLFI, causing significant speculation and market responses. These conflicting statements affected token performance. The issue involves major players with Aave, led by Stani Kulechov , and lesser-known WLFI team members. Aave was supposed to receive a token allocation and protocol fees, but ambiguity and denial have ignited market debates. The AAVE token price experienced an 8% drop amid the conflicting statements, as traders reacted to news uncertainty. Increased on-chain activity was noted during the turmoil, reflecting community concerns over governance and transparency. The incident highlights ongoing tensions in the decentralized finance space, sparking debates over governance transparency. Market speculation and a lack of clarity have significant financial implications, affecting both investor sentiment and project credibility. Market reactions were immediate, with increased whale transactions and TVL fluctuations. Discord and Twitter saw community polarization as debates over decentralization and revenue sharing methodologies intensified. Stani Kulechov, Founder, Aave, said, “The art of the deal.” – source Historical analyses indicate similar disputes have impacted DeFi protocols, prompting governance token price swings. The unresolved nature of the WLFI-Aave issue may continue to influence market dynamics, potentially affecting future regulatory scrutiny and industry protocols.
Marco Digital Announces Subscription of WLFI Fund Rights, Indirectly Investing Approximately HKD 3.925 Million in ALT5
Foresight News reports that Hong Kong-listed company Marco Digital Technology (MOG Holding) has issued a voluntary announcement regarding the subscription of WLFI fund interests. The announcement reveals that the company has recently invested USD 500,000 (approximately HKD 3.925 million) in Nasdaq-listed ALT5 Sigma Corporation by indirectly subscribing to membership interests in a fund. This fund, together with several global institutional investors and crypto venture capital firms, participated in ALT5’s recent offering, with World Liberty Financial serving as the lead investor.
Aave Founder Validates WLFI Partnership Amidst Speculation
What to Know: WLFI partnership confirmed by Aave founder, addressing speculation and market impact. Token distribution to Aave remains debated. Partnership influences DeFi governance and liquidity flows. Aave Founder Validates WLFI Partnership Amidst Speculation Aave founder Stani Kulechov confirmed the WLFI partnership’s validity on August 24, 2025, amidst speculation about token allocations, impacting market dynamics and governance discussions. This collaboration could significantly influence decentralized finance markets, with volatile asset performance and ongoing debates on governance and transparent token distribution shaping the community’s reactions. Aave founder Stani Kulechov confirmed the WLFI partnership’s validity amidst speculation, highlighting its strategic importance. This development influences Aave’s governance and financial strategies, prompting volatility in token markets. WLFI Partnership Validated with 7% Token Allocation Aave’s founder, Stani Kulechov, confirmed the validity of the WLFI partnership , amid rampant speculation. The partnership includes a 7% token allocation to Aave, according to the proposal. WLFI, a DeFi platform, has reportedly denied any immediate token transfers to Aave, underscoring disagreements over terms and transparency . The Aave DAO approved the proposal. Market Reactions Triggered by Partnership Confirmation The partnership confirmation triggered market movements, affecting Aave’s token prices and liquidity flows. The DeFi community reacted with mixed responses over transparency concerns. The proposed financial benefits for Aave include a significant portion of WLFI tokens and fees . However, discrepancies in execution have caused market volatility and asset value fluctuations. Past Partnerships Suggest Short-term Volatility Patterns Similar partnerships, such as Aave x Balancer, have previously led to market fluctuations due to token distribution discrepancies. Governance decisions often trigger short-term volatility. Future outcomes might mirror past events where initial market instability was followed by ecosystem integration and governance enhancements, possibly benefiting underlying projects.
From Polygon to Morpho to WLFI: Is Aave repeatedly acting as a "stepping stone," or is the DeFi blue-blood protocol merely a paper tiger?
Original Author: Lao Lu, Crypto OG Editor's Note: On August 24, a disagreement arose between the Aave team and the WLFI team regarding "Aave to Receive 7% of WLFI Token Total Supply," causing a sharp fluctuation in the AAVE token price. As of now, the dispute has not been resolved. Veteran Crypto OG Lao Lu has provided a retrospective on AAVE's past: In 2021, Polygon incentivized Aave's integration with $40 million in MATIC, leading to a surge in TVL and the full ecosystem launch, seen as a typical case of "win-win for both the public chain and the application." However, by 2024, the two parties fell out over cross-chain fund utility, with Aave even temporarily freezing liquidity on Polygon. The current dispute between WLFI and Aave bears a strong resemblance to past events. The following is the original content: In April 2021, Polygon (with a market cap of about $40 billion) provided $40 million worth of 1% MATIC incentives to Aave (with a market cap of about $6.5 billion at the time). For AAVE at the time, it was just a bonus. The mainnet's data grew rapidly, with numerous L2 solutions extending olive branches. However, for the relatively barren DeFi ecosystem of Polygon, it was a timely boost. In the realm of swaps: Uniswap was only officially deployed on Polygon in December 2021; before that, QuickSwap had been dominant. In the lending sector: There were many forked mainnet lending protocol projects on Polygon, but security was a concern, with incidents like EZLend facing numerous attacks. A $40 million incentive led to a TVL of over $1 billion. MATIC surged from $0.4 to $2.6 in December 2021. Although this was not solely due to Aave, the impact was undoubtedly profound. The valuation logic of that era was more "simple" – value was determined by capital deposition; where there was activity, there was capital. Unlike today, where $1 billion TVL is common, the collaboration between Polygon and Aave was long seen as a classic example of mutual benefit between a public chain and an application, becoming a template for imitation by later projects. Fast forward to December 2024, when the debate over whether $1.3 billion in assets from Polygon's cross-chain bridge should be placed in Morpho or Aave escalated. Polygon hesitated for a moment, while Aave highlighted the risks and responded firmly. Aave adjusted the parameters of the Polygon lending platform, setting the LTV to 0, meaning no borrowing was possible no matter how much was deposited, freezing liquidity, and even considering withdrawing from Polygon. In the end, neither side of Polygon made a choice, and the bridge's funds remained intact. Aave henceforth maintained a high level of caution towards Polygon. As for Morpho, its story is quite dramatic. Initially just an interest rate optimization layer for Aave/Compound, it later independently launched Morpho Blue. Leveraging its strong business development capabilities, Morpho quickly expanded and competed for market share, becoming Aave's most formidable competitor. Their strategy was to persuade various on-chain liquidity providers to migrate their liquidity to Morpho as much as possible, thus directly competing with Aave. The above story inevitably raises several questions: Did Polygon have to choose to cooperate with Aave in the first place? Could Polygon's ecosystem have been launched so rapidly without AAVE? Or would it have suffered from frequent security incidents with little attention? What exactly should be considered Morpho's behavior? Is this market innovation or "biting the hand that feeds"? When faced with their own interests, does Polygon still remember the timely help it received in the past, or has it long forgotten that kindness? Aave's story is still unfolding, with a similar scenario replaying between WLFI and Aave, taking advantage, forming partnerships, but how will the subsequent development of both parties unfold? I'll dig it out again in two years time. Are you afraid of products from Dough Finance? Is it just how projects interact, or is it also how people interact? Original Article Link
Trump’s latest money grab leaves his base broke again
Donald Trump, from inside the White House, has pushed a new crypto investment. This time, it’s dressed up as a “crypto treasury” firm. But just like the last two times, his base is paying the price. The setup is simple: Trump cashes out early. Everyone else eats the loss. According to The Wall Street Journal, the strategy looks eerily familiar to anyone who’s watched his past financial ventures blow up in supporters’ faces. The playbook hasn’t changed. Trump burns backers again with Truth Social collapse When Trump dropped his Truth Social platform through Trump Media & Technology Group, fans jumped in. But those who didn’t get in before it changed its ticker to DJT got crushed. That stock is now down 52% from right before the merger. From the high it reached a week later, it’s dropped 73%. Not learning the lesson, many went straight into $TRUMP, his personal memecoin launched in January. Early buyers flipped profits fast. But anyone who joined after the first 24 hours got wiped out. By the day Trump was sworn in again, it had fallen 90%. That’s still better than $Melania, which did even worse. The only thing that half-worked was the NFT drop. Trump sold $99 digital trading cards of himself posing as everything from a superhero to a space commander. Those NFTs hit a floor price of almost $800 at one point. Today, the cheapest one goes for around $200. But over the last week, individual sales have bounced between $82 and $846. Like always, late buyers lost the most. See also Base flips Tron with DeFi deposits clocking over $6.5 billion Now comes a new pitch: a “crypto treasury” company modeled after what Michael Saylor pulled off with MicroStrategy, now renamed Strategy. Saylor’s model is simple: use company cash, debt, and equity to buy bitcoin nonstop. It now holds more than 3% of all bitcoin in circulation, worth $70 billion. Trump’s family saw the hype and copied the structure, but swapped out bitcoin for a token called WLFI. The coin comes from World Liberty Financial, a company co-founded by Trump and his sons. As part of the fundraising, World Liberty took a stake in crypto firm Alt5 Sigma. The campaign is trying to raise $1.5 billion to buy WLFI tokens. Eric Trump, Trump’s son, now sits on Alt5’s board. WLFI is scheduled to go live in September. But it doesn’t offer ownership, profits, or anything concrete. It gives holders just 5% of the vote in the governance of USD1, a dollar-backed stablecoin controlled by World Liberty. That’s it. Bitcoin has a cap. WLFI doesn’t. It has no track record. The only value? Buying it is a public show of loyalty to Trump. Unless the holdings are massive enough to trigger disclosures, no one would even know you hold any. Meanwhile, Trump holds a mountain of WLFI. And a company tied to him is entitled to take 75% of any WLFI sold by World Liberty. That’s where the money is. Not in the token. In the setup. The profits don’t go to the public. They go straight back to Trump. See also AI psychosis is spreading — are you at risk? Owen Lamont, a portfolio manager at Acadian Asset Management, said , “This phenomenon violates every principle of finance. Before, people had to do complicated things to bamboozle investors. Now they can just do the simple thing.” And there’s history to back him up. Stocks that trade way above their actual asset value never hold up. The Taiwan Fund, launched in 1986, once had a premium of 300%. Today, it trades below the value of its holdings. Destiny Tech100, which has private equity stakes in SpaceX and OpenAI, soared to 20 times its asset value before falling back. It still trades at a premium, but far from the peak. So when Trump promises infinite upside, remember the cycle: he cashes in first, and everyone else gets left behind. There is no such thing as a perpetual money machine. Not even in crypto. Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.
AAVE Price Shrugs Off WLFI Jitters as Key Indicators Still Point to $430
The AAVE price had a turbulent few sessions after rumors tied to World Liberty Financial (WLFI). On August 23, the token dropped from $385 to $339 — a fall of more than 8%. Yet, that same $339 level held as strong support. While volatility spiked, data shows the move was more sentiment-driven than structural, and AAVE remains on course for higher targets. Exchange Reserves and Whale Accumulation Back Strength Over the past 30 days, AAVE exchange reserves fell 4.33%, sliding to 5.4 million tokens. That means about 244,400 AAVE left trading platforms. At the current price of $341, this equals roughly $83.3 million worth of tokens moving out of exchanges, a strong sign of accumulation rather than selling. AAVE Buyers In Focus: At the same time, whale wallets grew their holdings by 13.49%. Their stash rose from 17,222 AAVE to 19,542 AAVE, an addition of 2,320 tokens. At current prices, the extra holdings are worth nearly $790,000. Large wallets adding while exchange reserves shrink typically signal confidence from deep-pocketed players, which might explain why the WLFI-driven AAVE price dip was limited. For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. Spent Coins and Cost-Basis Heatmap Confirm Stability Another metric to consider is the spent coins age band. This indicator tracks whether older coins are being spent, which often shows selling pressure. On August 23, the total spent coins stood at 46,600 AAVE. By press time, it had dropped to 15,230 AAVE — a decline of about 67%. Fewer older coins being moved means long-term holders did not rush to exit, even during the rumor-driven fall. AAVE Sellers Have Stayed Calm: The cost-basis heatmap, which shows where traders accumulated tokens, adds further context. At $339, about 143,470 AAVE are held. Another 135,820 AAVE sit near $337. These clusters reflect strong demand zones, confirming why $339 acted as the turning point. Even if another pullback appears, this zone might be able to offer support. Key Resistance And Support Zones: The biggest accumulation band sits deeper at $272.90, where heavy holdings provide a final line of support. Unless that level is broken, AAVE’s structure stays intact. AAVE Price Action: Targets and Invalidation August has already been a strong month for the AAVE price. From $244 at the start of the month to a high of $385 on August 23, the token logged a gain of nearly 58%. Despite the WLFI setback, it still trades around $340, holding the uptrend. AAVE Price Analysis: The Fibonacci extension tool places $430 as the next bullish target, about 26% higher than the current levels. A confirmed daily close above $371 would open this path. However, post the current dip, $350 also emerges as a strong resistance level for the AAVE price. Even the cost basis heatmap from earlier identifies $352 as a strong accumulation level and, hence, a key resistance zone. However, traders should also watch invalidation levels. A drop under $275 might break into the largest cost-basis cluster at $272.90 and flip the structure bearish in the short term. As for the immediate support, $334 looks strong.
WLFI Contract Holdings Surge 667.92% After Major Unlock Event
Key Takeaways: Market reacted to WLFI’s $205M holdings post-unlock. Trump family-associated token reached $205 million. Whale activity influenced post-unlock price shift. WLFI Contract Holdings Surge 667.92% After Major Unlock Event WLFI contract holdings surged to over $205 million within a day, marking a 667.92% increase after a token unlock. Major investors, including top whale addresses, played a significant role in this increase by injecting substantial capital. WLFI contract holdings surged by 667.92% in 24 hours, reaching $205 million on August 25, following the network’s major token unlock. The increase highlights the significant market impact of the event. The surge in WLFI contract holdings underscores the influence of major stakeholders and the Trump family’s reported backing. The market’s strong reaction revealed implications for the asset’s liquidity and valuation. World Liberty Financial’s WLFI token holdings skyrocketed after the unlock event, significantly impacting its financial landscape. The holdings increase reflects investor interest and market dynamics following the activation of the Lockbox mechanism. Primary stakeholders, including the Trump family, played a critical role in backing the WLFI token. Large investments by top addresses have shaped the token’s distribution and influenced trading activity, marking a pivotal market event. “The $WLFI top 10 addresses collectively invested $73.08M and hold 4.63% of the supply, totaling 4.64 billion tokens.” The holdings increase has led to increased market volatility and shifts in liquidity, primarily influenced by whale activities and on-chain dynamics. The price changes following the perpetual trading debut highlight market vulnerability. The WLFI event aligns with previous trends observed during similar unlock occurrences, impacting both WLFI and linked assets. Ethereum’s liquidity pools experienced fluctuations due to the token’s trading on major platforms. Potential financial implications include changes in market valuation, and liquidity distribution, affecting related tokens. Historical trends show parallels with other governance token launches, suggesting possible ongoing volatility. As WLFI navigates post-unlock dynamics, the community and market observers keenly monitor its evolution.
Whale Deposits 1.56M USDC Into Hyperliquid for WLFI Long Position
Key Points: Depositing 1.56 million USDC after eight months of inactivity. Whale opened a long position in WLFI. Impacts could affect WLFI’s liquidity and price. Whale Deposit in Hyperliquid A whale deposited 1.56 million USDC into Hyperliquid to open a long WLFI position, impacting market dynamics. On-chain data shows no significant protocol shifts, though large whale positions have historically caused short-term market volatility. The deposit made by the whale has captured market attention due to its potential liquidity impact and long/short skew in WLFI markets on Hyperliquid. The anonymous whale deposited 1.56 million USDC after eight months away from the market, re-engaging with Hyperliquid for a strategic long position in WLFI. The deposit was confirmed through on-chain monitoring platforms. These moves occur as other large whales boost activity within Hyperliquid, heralding potential shifts. This activity has yet to cause significant volatility or liquidity alterations directly on the protocol per available data. However, large-scale movements, such as these, can signal intention and generate speculation about market dynamics. Notably, Whale 0x31F9 also made a substantial $15.47M deposit, highlighting a possible trend among significant investors in the platform. WLFI may experience changes in its market position, and the whale’s move could alter liquidity and pricing trends if the position is liquidated. Historical data suggest whale activities trigger short-term fluctuations, although long-term stability remains consistent. Information about potential financial and technological outcomes remains speculative, with no official comments from developers or regulation bodies. Nonetheless, the market’s current response includes anticipation of possible similar moves from other whales, indicating a strategic interest in Hyperliquid’s offerings. Historical precedent also suggests marginal volatility impacts, though broader implications are still unfolding without immediate regulatory or structural intervention.
Trump Enters Cryptocurrency: The Surprising Impact on AAVE Coin
During the recent election cycle, President Trump forayed into a sector more lucrative than real estate. Launching his own cryptocurrency DeFi platform, Trump issued an official meme coin even before his presidential inauguration. These were captivating days, and people flocked to his tokens without questioning the U.S. President’s deep involvement with cryptocurrency. As the Trump family amassed substantial cryptocurrency holdings, curiosity arose about the correlation between Trump and the decline of AAVE Coin. The Decline of AAVE Coin A week after the launch of WLFI by Trump’s team, the tokens became transferable, clarifying AAVE’s position in World Liberty Financial. This clarity, however, met with dissatisfaction among investors, who began to sell off their holdings. The price of AAVE Coin began to drop when it was denied that the project would receive a 7-8% token allocation from WLFI, a claim that was heavily anticipated and later refuted by a statement given to WuBlockchain. “The WLFI team informed WuBlockchain that the claim stating ‘Aave would receive 7% of the total WLFI token supply’ was false and a hoax. Previously, a community member had suggested AaveDAO would receive protocol fees and tokens as per a prior proposal.” What transpired in the chart above? Initially, expectations were denied, dropping the price to $339, before it climbed above $380 and now hovers just above $350. Aave’s founder, Stani Kulechov, shared the proposal accepted by Aave DAO, stating, “The proposal created by the WLF team was approved and put to a vote.” WLF subsequently confirmed this. Fluctuations in AAVE Coin Price The WLFI team denies it, AAVE’s Stani affirms it, causing fluctuating prices. This situation exemplifies the volatility in cryptocurrencies influenced by news, as the gap was notably wide. Those benefiting from the initial dip later capitalized on AAVE’s refutation, thereby profiting from the subsequent rise. AAVE is a major project in the DeFi space, and Trump’s team’s involvement is not coincidental. It is expected to continue growing in the long term. For this prominent altcoin , the $350 level is crucial, having rebounded from this base multiple times to attempt closeness to $400. If the upcoming week proceeds as expected, we might witness a surge up to $400.
Ethereum Whale Shorts Market, Triggers Institutional Activity
What to Know: Ethereum whale strategically shorted ETH, influenced institutional moves. Market reactions visible in trading volumes. Impacts DeFi tokens and institutional allocations. Ethereum Whale Strategic Short Position and Market Impact An Ethereum whale triggered a significant market event by shorting large volumes of ETH through Hyperliquid, leading to substantial derivatives positions and influencing institutional activities on August 24, 2025. This movement sparked on-chain shifts and investor speculation, highlighting Ethereum’s vulnerability to whale activities and the increasing role of institutional investor actions and derivatives trading. A prominent Ethereum whale executed large-scale short positions on ETH in August 2025 through Hyperliquid’s platform, spurring active institutional involvement. This event underscores significant market shifts tied to major Ethereum whale actions, highlighting their influence over cryptocurrency trading dynamics. Ethereum Whale Shorts ETH with 5.42 Million USDC A recently detected Ethereum whale executed significant short positions on ETH using a new address funded with 5.42 million USDC. This occurred on Hyperliquid, targeting ETH, WLFI, and XPL. The whale action coincided with BlackRock’s accumulation of 55,000 ETH, marking a period of increased institutional activity. Hyperliquid Protocol Logs recorded that “Whale created a new wallet address… deposited 5.42M USDC… shorts 10,641 ETH, 396,711 WLFI, 53,793 XPL”. Ethereum’s Trading Volume Surges Following Whale Moves The immediate impact was seen in Ethereum’s trading volumes, with derivatives and DeFi tokens reacting significantly. Institutional interest surged as blockchain data highlighted rising TVL and liquidity. Blockchain Explorers noted that a “Bitcoin OG whale swaps 300 BTC… now holds 257K ETH with $100M+ unrealized gains”. Institutional responses included adjustments in asset allocations, aligning with on-chain whale activity. These shifts reflect broader market movements driven by visible whale actions. Institutional Strategy Shifts After Ethereum Whale Activity Historically, whale-induced volatility results in short-term instability, but market-trend absorption often follows. Previous cycles show patterns of whale activity influencing trading behavior temporarily. Predicted outcomes include potential realignment driven by ongoing institutional participation. Historical data suggests whale actions could shape near-term market narratives substantially. Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.
Aave Founder: Proposal Created by WLFI Team Has Been Voted on and Approved by Aave DAO
Foresight News reports that Aave founder Stani.eth responded in the comments section of a tweet regarding the claim that "the WLFI team stated Aave would receive 7% of the total token supply," saying this information is inaccurate. He attached a link to the relevant proposal and stated: "The proposal created by the WLFI team has already been voted on and approved by the Aave DAO."
AAVE Volatility May Follow Aave-WLFI Dispute Over Alleged 7% Token Allocation, Raising Governance Concerns
Aave WLFI dispute erupted after conflicting claims about a 7% WLFI token allocation to Aave; the disagreement sparked immediate market volatility and an 8% AAVE price decline, highlighting governance and transparency concerns in DeFi. 7% token allocation claim disputed publicly Conflicting statements from WLFI and Aave figures drove market uncertainty. On-chain data shows an 8% AAVE price drop, increased whale activity, and TVL fluctuations. Aave WLFI dispute: concise breakdown of the 7% allocation claim, market impact, on-chain signals, and investor actions to monitor now. What is the Aave WLFI dispute? Aave WLFI dispute refers to public contradictions over a proposed 7% WLFI token allocation allegedly destined for Aave and related protocol fees. The disagreement, highlighted by statements from Aave leadership and WLFI team members, created rapid market uncertainty and immediate price action for AAVE. How did the token allocation claim affect AAVE price? Conflicting announcements triggered an 8% AAVE price drop as traders digested uncertainty. On-chain metrics recorded elevated whale transactions and higher swap volumes. Short-term TVL shifts and social sentiment spikes amplified volatility and raised governance transparency questions. Why did the statements cause market turbulence? Public denials and clarifications created asymmetric information. Traders reacted to perceived governance risk and potential protocol fee changes. Short-term liquidity shifts and concentrated token holder moves magnified price swings. Who are the key figures and what did they say? Key participants include Stani Kulechov, Founder of Aave, and WLFI team representatives. Aave commentary was characterized as deal-driven; WLFI issued a denial of the 7% allocation claim. The exchange of contradictory messages intensified market debate. How can investors verify token allocation claims? Verify claims through on-chain records, official project governance proposals, and verified on-chain multisig addresses. Prioritize direct governance forums and transaction histories rather than social posts. Frequently Asked Questions Did WLFI officially allocate tokens to Aave? WLFI issued a public denial of the 7% allocation claim and no verifiable on-chain allocation linked to that claim has been confirmed in public transaction records. What triggered the AAVE price drop? Conflicting public statements and heightened on-chain activity prompted sell-side pressure and an 8% AAVE price decline as traders reduced exposure to governance risk. Comparative Snapshot Metric Before dispute After dispute AAVE price movement Stable (baseline) Down ~8% On-chain activity Normal Spike in whale transactions & swaps TVL Relatively steady Short-term fluctuations Key Takeaways Claim confusion: Public contradictions over a 7% WLFI allocation created market uncertainty. Market impact: AAVE fell roughly 8% with increased on-chain and whale activity. Investor action: Verify allocations via governance posts, multisig activity, and token contract events. Conclusion The Aave WLFI dispute underscores the sensitivity of DeFi markets to governance clarity and public messaging. Investors should rely on on-chain verification and official governance channels to assess allocation claims. Watch official WLFI governance records and Aave statements for resolution and follow-on market effects. In Case You Missed It: Grayscale Files S-1 for Potential XRP ETF After Ripple Legal Win, Clustered Filings May Signal Institutional Interest
Trader Faces $412k Loss on WLFI Short Position
Key Takeaways: Trader incurs significant loss on leveraged WLFI position. Unrealized loss exceeds $412,000 on synthetic contracts. High-risk trading sparks discussion on market volatility impacts. A trader using address **0xbfaa** faces over $412,000 in unrealized losses after taking a 3x short position on the WLFI token through Hyperliquid’s new trading platform. The significant potential loss highlights the risks of highly leveraged trading, drawing attention to emerging financial products in decentralized finance and their impact on market volatility. A trader is facing a $412,000 unrealized loss on a 3x short position in WLFI through Hyperliquid’s products. This position involves significant financial risk due to the absence of WLFI’s token launch. Address 0xbfaa executed a high-risk WLFI short , hoping for price declines. The trade, facilitated by Hyperliquid, represents speculative movements on an unlaunched token. No direct statements from involved executives have been reported. The current speculative environment displays heightened financial risk for involved traders. The $412,000 loss underscores the dangers in trading on a token yet to be issued, highlighting liquidity challenges and speculative market behavior in crypto spaces. This facilitates discussion among experts and traders about market stability. Trader Analysis (via Twitter Monitor), Anonymous Trader – “Taking a short position on a token like WLFI is highly risky, especially with such leverage. The potential for rapid losses can exceed initial expectations” [1][2]. This scenario amplifies focus on how decentralized finance handles synthetic contracts and speculation dynamics. Questions arise about the impact of these contracts on overall market movement and risk management strategies within the sector. Historical analysis indicates such speculative contracts challenge typical market behaviors, potentially leading to increased regulatory scrutiny. Hyperliquid’s activities continue to stir debates regarding balanced risk and reward in crypto trading ecosystems.
Aave Founder Denies 7% WLFI Token Allocation
What to Know: Aave founder and WLFI deny claims of a 7% token allocation. Allegations deemed unverified, labeled as false. Potential $2.5 billion treasury impact under governance review. Aave Founder Denies 7% WLFI Token Allocation Aave founder Stani Kulechov and the WLFI team have rejected unverified claims of a 7% WLFI token allocation to Aave on August 23, 2025. This refutation impacts DeFi sector dynamics and investor sentiment, as it challenges previously reported partnerships and showcases the significance of governance in token allocation decisions. Aave-WLFI Partnership Denies 7% Token Rumor Aave founder Stani Kulechov has confirmed a partnership with WLFI , a move initially seen as a strong strategic alignment. However, he clearly stated the rumored 7% token allocation remains unverified and requires governance process approval. WLFI, comprising influential figures including Trump family members, also refuted news about token allocations to Aave. The partnership discussion reflects emerging intersections between DeFi and traditional influence channels. Market Reaction to Unverified Token Allocation Claims AAVE token exhibited a notable market fluctuation, highlighting the sensitivity of DeFi markets to unverified information. Despite rumors, no direct on-chain consequences from alleged allocations were reported. The partnership implies a potential $2.5 billion boost to Aave’s treasury, only realizable through formal governance approval. This emphasizes the ongoing reliance on community consensus in DeFi operations. DeFi Governance: Past Challenges and Future Outlook Past partnerships in DeFi, such as Compound and Uniswap, saw similar challenges with token distribution rumors affecting governance and market perceptions. These events underline the critical nature of community-led decision-making. Future decisions will likely mirror historical trends where community governance plays a crucial role in approving significant allocations. This maintains market stability and trust among stakeholders in the DeFi sector. Stani Kulechov, Founder, Aave, confirmed: “A partnership with WLFI exists, but claims regarding a 7% token allocation to Aave remain unverified and have not been approved through governance.” – source
A trader takes a 3x short position on WLFI, incurring an unrealized loss of over $412,000
BlockBeats News, August 24 — According to monitoring by Lookonchain, trader 0xbfaa has opened a 3x leveraged short position of 5.3 million WLFI (worth $1.53 million), and is currently facing a loss of over $412,000.
Aave to Receive 7% of Total WLFI Tokens Sparks Ongoing Dispute, No Consensus Reached
BlockBeats News, August 24 — Aave’s official team and the WLFI team have clashed over the issue of “Aave receiving 7% of the total WLFI token supply,” triggering significant price volatility in the AAVE token. The timeline of events is as follows: On December 6, 2024, the WLFI team proposed to “launch an Aave V3 instance on the Ethereum mainnet,” which was approved on December 13. According to the proposal, Aave, as a lending ecosystem partner of WLFI, will have the same reserve factor mechanism in this Aave v3 instance as in the main Aave instance. AaveDAO will receive 20% of the protocol fees generated by the WLFI Aave v3 instance and will be allocated approximately 7% of the total WLFI token supply, to be used for future participation in WLFI governance, liquidity mining, and promoting the decentralization of the WLFI platform. At 20:30 last night, in response to questions such as “Is the agreement between WLFI and the AAVE protocol still valid? Are they really building on Aave? There are many different rumors circulating,” Aave founder Stani.eth stated that the agreement remains valid. He also prominently retweeted the view that “at current prices, the Aave treasury will receive $2.5 billion worth of WLFI, making it one of the biggest winners of this cycle,” calling this the art of the deal. Subsequently, AAVE surged to $385. At 22:32 last night, a suspected WLFI Wallet team member, Dylan_0x (@0xDylan_), posted denying the news that “Aave will receive 7% of the total WLFI token supply” as related to the proposal, causing AAVE to drop by more than 5% in a short period. At 00:13 early this morning, according to crypto media Wu Blockchain, the WLFI team told them that the claim “Aave will receive 7% of the total WLFI token supply” is false and is fake news. Subsequently, Aave founder Stani.eth responded under the tweet, stating that the proposal created by the WLFI team had been voted on and approved by Aave DAO, with WLFI’s consent, and attached the proposal link. BlockBeats note: There is currently no conclusion on this matter, nor is there any official public channel to verify whether Dylan_0x (@0xDylan_) is a member of the WLFI Wallet team. Aave founder Stani.eth has spoken on behalf of Aave officially, while the WLFI team has yet to respond through official channels. BlockBeats will continue to follow the developments of this event.
WLFI Top 10 Addresses Have Invested a Total of $73.08 Million, Holding 4.63% of the Tokens
According to Jinse Finance, on-chain analyst Ai Yi (@ai_9684xtpa) has released an overview of the top 10 WLFI holders. The data shows: The top 10 addresses have invested a total of $73.08 million, holding 4.63% of the tokens, amounting to 4.64 billion tokens in total; 100% of the top 10 addresses participated in the first public sale round, with one address making an additional investment in the second round; the top holding address, moonmanifest.eth, holds over 1 billion tokens, ranking far ahead of the rest; based on the current contract price of $0.2843, the 20% of tokens unlocked at TGE are valued at $264 million. The analyst notes that the top 10 holders listed here only include public sale participants, and do not account for strategic round, advisor, or partner allocations.
Aave founder once responded to the WLFI agreement: It is still valid
On August 23rd, Aave founder Stani.eth responded on social media at 20:30 today to questions regarding "Is the WLFI protocol still valid with AAVE? Are they really building on Aave? There are many different rumors from the outside." He stated that the protocol is still valid. "Based on current prices, the Aave treasury will receive WLFI worth $2.5 billion, making it one of the biggest winners in this round." In response to this view, Aave founder reposted a comment saying, "The art of trading." Earlier reports stated that Aave will receive 7% of the total WLFI tokens and will receive 20% of the protocol fees generated by WLFI Aave v3. However, this topic was later denied by a member of the alleged WLFI Wallet team, sparking intense discussions on social media platforms and causing significant fluctuations in the price of the AAVE token.
Whale Closes XPL Long, Shorts WLFI Amid Strategy Shift
Key Points: A whale closes long position on XPL and shorts WLFI WLFI trade creates speculation with $274.7 million pre-market volume Market analysts compare WLFI to high-profile tokens Whale Adjusts Cryptocurrency Portfolio Amid WLFI Volatility A significant whale in the cryptocurrency market is closing its long position in XPL while shorting WLFI, retaining long positions in ETH and SOL worth over $50 million. These market moves could influence trading dynamics, affect cryptocurrency values, and trigger market speculation regarding whale strategies. A Whale’s Major Portfolio Adjustment A whale is adjusting its cryptocurrency portfolio by closing a long position on XPL while shorting WLFI. The whale still retains long positions in ETH and SOL, which are valued at over $50 million. The primary players include the World Liberty Finance project, tied to the Trump family. Virtual Bacon noted that WLFI trades pre-market with significant valuation. However, the whale’s identity remains undisclosed. Implications of WLFI Activity Trading activity in WLFI has caused substantial market speculation, leading to pre-market trading volumes exceeding $274.7 million. Institutional movements like ALT5 Sigma’s initiatives further underscore the financial activities around WLFI. With WLFI hosted on Ethereum, the network may see increased on-chain transactions and fee volumes. The shorting of WLFI has introduced volatility to associated cryptocurrencies, influencing market dynamics. Market Analysis and Future Predictions Market analysts have compared WLFI’s launch to other high-profile tokens, reflecting on the volatility experienced during these transitions. Expert insights suggest that the shifting crypto positions highlight potential shifts in investment strategies and market sentiment. Such changes could lead to regulatory scrutiny and technology-focused financial developments. “Pre-market trades are collateral-based IOUs, no tokens move until launch.”
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