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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InThe Trump-linked WLFI token hit a record low following revelations that 5 billion tokens were used as collateral for $75 million in loans. Market concerns remain high as 75.33% of the total supply is locked, while the project faces increasing legal pressure from early investors. In a bid to stabilize its ecosystem, the project recently minted $25 million in USD1 and burned $3 million to manage supply dynamics. Furthermore, the platform claimed to have repaid $25 million in debt to resolve a critical withdrawal crisis within its DeFi pool. These actions follow a risky move to increase leverage to 4x, which pushed the project near its maximum borrowing capacity and strained its financial profile. Currently, the project is seeking to restore investor confidence through a community consultation phase regarding its future tokenomics and release plans.