World Liberty Financial (WLFI) has experienced a significant decline, setting a new historic low of $0.077. This situation arose amid sharp criticism regarding large loans secured by WLFI on the Dolomite platform.
This is reported by Business • Media
As of the time of publication, WLFI is trading at $0.0794, with a market capitalization of $2.5 billion. This price drop is linked to the loud public criticism that arose following news of numerous loans secured by the WLFI token on the Dolomite platform.
Reasons for WLFI’s Decline: The Role of Dolomite and Market Risks
The decline in WLFI’s value began after information surfaced about the use of the token as collateral for obtaining significant loans on Dolomite. According to data from Arkham Intelligence, approximately 5 billion WLFI has been deposited on the platform over the past month. Specifically, on February 20, 2026, World Liberty Financial deposited 890 million WLFI on Dolomite, receiving $20 million in USD1 in return.
Overall, through several tranches, the company has received approximately $75 million in USD1 and USDC. Currently, WLFI deposits account for about 55% of Dolomite’s total liquidity, as confirmed by the project’s official statistics.
The choice of Dolomite for securing loans is likely influenced by the fact that one of the platform’s co-founders, Cory Kaplan, has been an advisor to World Liberty Financial since August 2024.
The crypto community is highlighting the high risks associated with such a strategy. The main threat is the low market depth of WLFI. One user on X compared the situation to a problematic financial mechanism:
“This is the financial equivalent of printing casino chips, borrowing cash against them, and assuring everyone else not to panic because the casino still believes in these chips.”
Another market participant emphasized that liquidating such large positions without causing serious damage is impossible: to do so would require selling up to 5% of the entire token supply, which in a low liquidity environment could lead to an even deeper crash.
World Liberty Financial’s Position and Community Reaction
The World Liberty Financial team responded to the criticism in their official post on X, stating that the project has fallen victim to false accusations. They claim that the risk of liquidation is exaggerated, and if necessary, the company is prepared to increase its collateral. To confirm their financial reliability, they cited $159.5 million in annual revenues from USD1 reserves and a buyback of WLFI worth $65.58 million over the past six months.
However, such explanations have left skepticism in the community. There is a sentiment that the situation with WLFI could be even worse than the notorious crypto scandals of previous years:
“We thought Sam Bankman-Fried or Gary Gensler were the worst things that could happen to the crypto industry. And they were AWFUL. But it turns out it was that guy who surrounds himself with sycophants, siphons every penny for himself, and then ruthlessly destroys companies and casinos without taking any responsibility,” said Professor Tonya Evans.
Additional attention is being paid to the situation due to World Liberty Financial’s connection with the family of U.S. President Donald Trump. American lawmakers have repeatedly expressed concerns about a potential conflict of interest, but the matter has not progressed beyond public criticism.