WLFI’s highly anticipated token launch experienced a severe downturn, with the price plummeting 26% within just three hours of trading commencing. This dramatic crash has been attributed to insider selling, which saw large amounts of tokens being moved off-chain by those in control of the project, leaving retail investors exposed to significant losses. The sudden sell-off was compounded by a rapid increase in token exchange volume on Binance, OKX, and Gate.io, signaling significant market activity. This price action highlights a concerning trend in crypto: insiders often capitalize early on before broader public participation. 698 million WLFI tokens were transferred to exchanges within just 24 hours, with Binance receiving the lion’s share of this trading activity. This event raises concerns about a lack of transparency and control over the project’s token distribution and governance structure, as insiders hold over 56% of the supply, controlling nearly 75% of net revenue. The release of 1.627 billion WLFI tokens was directly triggered by the launch, with the initial 20% allocation becoming immediately accessible for sale. This action led to an immediate sell-off, further amplifying losses suffered by retail investors who were unknowingly caught in a liquidity trap set up by presale participants with significant holdings. A closer examination of the token activity sheds light on the sudden price crash and raises questions about the project’s future.