A wallet that is possibly linked to the decentralized finance (DeFi) project, World Liberty Financial, may have recently offloaded a considerable amount of Ethereum (ETH). The wallet allegedly sold 5,471 ETH — valued at around $8 million at the time of the transaction, with each coin priced at $1,465. This data comes from a recent report from Lookonchain, a blockchain data analytics firm.
This sale represents a significant loss for World Liberty Financial when compared to their initial investment. The DeFi project had formerly amassed 67,498 ETH, which was worth approximately $210 million at the time of acquisition. The average price per token was roughly $3,259. However, given the current price of Ethereum, around $1,400, World Liberty Financial appears to be in a financial quagmire—being underwater by an estimated $125 million.
The cryptocurrency market has not been kind to Ethereum, the second-largest crypto asset. Ethereum’s value has plummeted over 40% since Eric Trump, the web3 ambassador for World Liberty, advocated for the asset. These statistics are based on data from TradingView, a social platform for traders and investors.
However, Ethereum is not alone in its downward trajectory. The overall cryptocurrency market has been experiencing a sharp downturn. Bitcoin, the leading cryptocurrency, has taken a hit of over 20% since the beginning of February. Other cryptocurrencies have not fared any better, with Ripple (XRP) and Cardano each losing around 30% of their value.
Some cryptocurrencies have been hit even harder. Solana, for instance, has experienced a sharp drop of almost 50%. Similarly, Dogecoin, the meme-inspired cryptocurrency, has seen a decrease of approximately 47%.
In the midst of this market turmoil, TRON and Binance Coin have proven to be the most resilient among the top 10 cryptocurrencies by market capitalization.
World Liberty Financial is no stranger to controversy. The project has been embroiled in several issues related to token sales and management. Allegations of unauthorized token sales or swaps have been levelled against the project. However, World Liberty has firmly denied these allegations, maintaining that all transactions have been carried out in compliance with existing regulations.
This unfolding scenario underscores the volatility of the cryptocurrency market. While the potential for high returns can be enticing, the risk of substantial losses is ever-present. As always, potential investors are advised to conduct thorough research and exercise caution when dealing with cryptocurrencies.
