WLFI Futures Plummet 44% on Opening Day Amid Short Selling
Futures of World Liberty Financial (WLFI) fell over 44% upon opening this weekend, as traders opted to short the token. Initially priced at $0.44 on Aug. 23, it dropped below $0.25 shortly after, with significant trading volume.
Key details include:
- The token was initially planned to be non-transferrable, but this restriction was lifted in mid-July.
- WLFI's current price reflects a fully diluted value of $24 billion, down from an initial valuation of $44 billion based on a total supply of 100 billion tokens.
- Trading volume exceeded $59 million, with $57 million in open interest recorded.
- The funding rate is -35%, indicating bearish sentiment as traders are paying to maintain short positions.
This negative funding rate suggests traders view WLFI as overvalued and anticipate further declines.