The crypto world loves a story about big promises—until the numbers start talking back. Lately, the loudest questions aren’t about whether tokens can move fast, but about whether one specific crypto setup is being run with enough care when prices go against it.
World Liberty’s primary token, WLFI, has lost 74% of its value since August. As of Monday, it was trading at around 8 cents. The backdrop is messy in general—dozens of platforms have launched in recent years, each touting its own tokens and rules, with many offering assurances on security and how company money is handled. Some tokens rose. Most, broadly, slid as the wider crypto market cooled.
Still, the details around World Liberty are what got people leaning in. Misryoum newsroom reported that its stablecoin, USD1, ranks among the 10 most heavily used stablecoins, meant to be traded at par with one U.S. dollar. Those stablecoins have gotten attention through prominent partnerships and availability on major exchanges like Binance and Kraken. But even when one product seems to be holding steady, investors get nervous about what’s happening elsewhere—especially with loans and collateral.
In February, Misryoum newsroom reported that World Liberty borrowed $75 million from another crypto group, Dolomite, and used 5% of the entire supply of WLFI as collateral. That triggered fears on social media: if WLFI’s price keeps declining, could World Liberty actually make good on the loan? People were essentially doing the math in public, then arguing about what “enough collateral” really means.
World Liberty responded Thursday on X, saying it is “nowhere near liquidation,” adding that it would simply supply more collateral if the price declined further. On Friday, it said it had already repaid $25 million. Representatives for Sun and Dolomite did not respond to requests for comment. And in a moment that sounded more like a classroom than a courtroom, Austin Campbell—an instructor and crypto consultant—said the concerns about the loan arrangement appear justified.
“If you took this conduct and translated it to traditional markets, you would have some problems,” he said. That comparison lands for a reason. In traditional finance, people don’t just talk about “not liquidating yet” and move on. They ask what the risk profile looks like, how quickly collateral can be topped up, and whether the situation would become ugly if the market keeps sliding.
The pressure didn’t stop there. Misryoum newsroom reported that last year, House Democrats devoted an entire week to calling out the Trump family’s crypto activities, accusing Trump of “profiting off the Presidency.” The White House denied any wrongdoing. World Liberty’s governing document says a Trump family-owned company has the rights to 75% of revenues from token sales after operating expenses are deducted. On his 2025 financial disclosure form, Trump listed more than $57 million in income from World Liberty. A representative for the Trump Organization did not respond to a request for comment, and the White House has previously issued blanket denials of any conflicts of interest.
Then there’s the pattern that keeps popping up: shortly before his inauguration in January 2025, Trump used a separate corporate entity to launch another crypto token known as TRUMP. Like WLFI’s, TRUMP’s value plummeted too, and today it trades at around $2.81, compared with as much as $45 around the time it launched. A coin Melania Trump launched around the same time has taken a similar trajectory. She has denied direct involvement in managing the coin.
Even now, with officials and investors watching closely, it’s hard to tell where the story settles—because the market doesn’t really wait for explanations. In a café downtown, the buzz of someone’s phone notifications—coins blinking red, then green again—felt like the soundtrack to this whole debate. And the questions keep coming, a bit louder each time: if tokens keep drifting downward, what happens to the structures built around them… and who ends up eating the risk? Actually, that last part might be the point.
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