Andrew Tate’s WLFI Bet Fails with $67K Loss but He Reopens Long Position

TLDR

• Andrew Tate lost $67K on WLFI but continued betting on the token’s price rise with another long position.

• WLFI’s post-launch price drop sparked a governance proposal for token buybacks and burns.

• The WLFI token’s circulation surged by 24.6 billion tokens after an unlock, impacting market prices.

• Andrew Tate’s cumulative losses on Hyperliquid neared $700K, yet he persists with high-stakes crypto bets.

Andrew Tate, the former kickboxing champion and controversial social media figure, is once again making waves in the cryptocurrency market. Despite suffering a significant loss of $67,500 on the World Liberty Financial (WLFI) token earlier this week, Tate has not given up on his bet. According to blockchain data platform Lookonchain, Tate opened a new long position on the WLFI token almost immediately after his liquidation.

The loss came just days after the WLFI token was launched on exchanges, a debut that saw the token’s price fall sharply. However, Tate’s decision to reinvest, even after such a steep loss, reveals his continued optimism in the token’s future performance. The WLFI token, which had a promising launch, saw its price dip by about 36% from a peak of $0.331 to a low of $0.210 before recovering slightly.

Governance Proposal for Token Buybacks and Burns

The sharp drop in WLFI’s price prompted the World Liberty Financial team to issue a new governance proposal to address the token’s volatility. The platform suggested using 100% of the protocol fees generated from liquidity positions across multiple blockchains, including Ethereum, BNB Chain, and Solana, to buy back WLFI tokens from the open market. The tokens would then be burned, reducing the circulating supply and, theoretically, increasing the token’s value over time.

This proposal aims to counteract the downward price pressure that followed the initial token launch. A reduction in circulating supply typically generates more scarcity, which can lead to an increase in price if demand remains steady.

While the proposal has gained significant support, the exact impact of these buybacks remains uncertain, as it is difficult to predict the total fee amounts that will be used for such transactions.

Andrew Tate Growing Losses and Continued Bets on Crypto

Andrew Tate’s recent activity on the decentralized exchange Hyperliquid has raised questions about his approach to cryptocurrency trading. After his WLFI position was liquidated, his cumulative losses across multiple positions reached nearly $700,000. Despite this, Tate remains committed to his high-risk strategy, continuing to open new positions on the market.

His bet on WLFI is part of a broader pattern of aggressive trading, including his earlier short position on Kanye West’s YZY token, which also ended in a loss.

Andrew Tate’s actions highlight a volatile approach to cryptocurrency, relying on both high leverage and speculative assets. For many in the crypto community, Tate’s willingness to take substantial risks in the face of such losses provides a glimpse into the high-stakes world of decentralized finance (DeFi).

Market Reaction and the Future of WLFI Token

Despite the challenges that the WLFI token has faced since its launch, it remains a point of interest for traders and investors, particularly with the buyback and burn proposal in the works. For many, the future of the token lies in the execution and transparency of the buyback program. The proposal, if successful, could help restore confidence in the token, potentially leading to a market rebound.

However, market watchers remain cautious. The WLFI token’s initial drop after launch serves as a reminder of the volatile nature of crypto assets, especially those linked to highly speculative ventures. As for Tate, his repeated investment in the token demonstrates his belief in its potential upside, even amid substantial financial losses. The broader crypto community will be closely monitoring both Tate’s actions and the WLFI team’s execution of their governance proposals in the coming weeks.

The post Andrew Tate’s WLFI Bet Fails with $67K Loss but He Reopens Long Position appeared first on CoinCentral.