WLFI fluctuates 20.2% in 24 hours: Governance unlocking proposal passes, triggering selling pressure

Volatility Brief

WLFI rebounded from a low of $0.0515 to a high of $0.0619 in the past 24 hours before falling back to the current $0.05163, with an overall amplitude of 20.2%, showing a high-volatility downtrend. The 24-hour trading volume is around $141 million, which is significantly higher than the previous day, indicating increased market activity.

Brief Analysis of the Cause of the Abnormal Movement

- Governance Unlock Voting Passed: The proposal that ended on April 30 received 99.5% support, meeting the quorum and approving the unlocking of 6.228 billion WLFI tokens (including 1.704 billion for early supporters and 4.524 billion for team/advisors). Of these, 10% will be permanently burned and 90% will be locked for 2 years and gradually released over the following 3 years. This news directly triggered panic selling among investors, pushing the price to a historic low.

- Retail Investors Moving to Exchanges for Selling: After the voting was confirmed, several retail holdings were transferred to exchanges, increasing available supply and selling pressure.

Market Views and Outlook

Community sentiment is mainly negative, with X platform discussions focusing on supply dilution and uncertainty in governance. Investors are concerned about long-term selling pressure; analysts point out that short-term support is near $0.05. If there is a lack of transparency in the subsequent execution of the vote, the price may further test downside risk.