The recent fall of WLFI Token is caused by a combination of various factors. Based on on-chain data and relevant situations, the main reasons are as follows:

- Large Token Unlocking and Selling Pressure: The Trump family-affiliated entity DT Marks DEFI LLC holds 22.5 billion WLFI Tokens, and early investors also hold a large amount of low-priced Tokens. As the Tokens are unlocked, a large number of chips flood into the market, significantly increasing supply while buy orders are limited, leading to price pressure and a fall.
- Market confidence undermined: The WLFI project blacklisted Sun Yuchen's cryptocurrency wallet, freezing billions of WLFI tokens associated with it. This incident raised concerns about the project's centralized governance, exacerbating investor panic and leading to significant sell-offs.
- Lack of practical value support: The core pegged asset of WLFI, the USD1, experiences significant price fluctuations, the value anchor is unstable, and its advertised governance function is essentially non-existent, with no practical scenarios to support the Token price.

As for whether the decline will continue, in the medium term, the downside risk is higher. On the one hand, a large number of restricted tokens will expire and unlock in the next 1-2 months, which will further increase the pressure on market supply, and it will take time for market confidence to recover, and it may be difficult for buying orders to follow up quickly, and the imbalance between supply and demand will be difficult to improve in the short term. On the other hand, the problems of the project itself, such as insufficient value support and controversial governance models, still exist, and these factors will continue to have a negative impact on prices. However, in the short term, there may be a technical rebound as prices have fallen sharply, but the overall trend is still not optimistic. In short, this is obviously a project to cut leeks, and the rebound is empty!