On Saturday, claims emerged that Aave would receive a special token allocation from World Liberty Financial (WLFI). The rumors caused the token price to fall from $385 to $339. Later, it recovered slightly to around $352. 

World Liberty Rumors Shake Aave Price 

Blockchain reporter Colin Wu reached out to the WLFI team, who denied the claims. According to the team, reports stating that Aave would receive 7% of the total WLFI supply were false. However, Wu referenced a community proposal from October 2024. The proposal outlined that the Aave DAO would receive 7% of WLFI circulating supply and 20% of protocol revenue from WLFI distributions on Aave v3. 

Aave founder Stani Kulechov described the proposal as “the art of the deal.” He also confirmed that the proposal’s terms remain valid. Nevertheless, with no official announcement, discussions intensified. Meanwhile, Cointelegraph contacted both Aave and WLFI representatives but received no response by publication time. 

DeFi Interest Surges Again 

The rumors surfaced during a resurgence in the DeFi sector. According to DeFiLlama, total value locked (TVL) across protocols surpassed $167 billion. This figure approaches the all-time high of $212 billion seen in December 2021. 

Following the U.S. elections, expectations of a friendlier regulatory environment drew investors into the space. Banks, asset managers, and financial services firms increasingly engaged with DeFi protocols. This institutional participation is shaping many current market narratives. 

Moreover, the community debates how government intervention could alter DeFi’s decentralized nature. On the other hand, some users worry traditional institutions may take control of the sector. Ultimately, the Aave rumors fueled these discussions further. 

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The post WLFI Claims Proven False, Token Experiences Price Drop! appeared first on Coin Engineer.

Following the airdrop announcement, Binance officially announced the listing of Kaito (KAITO) token on February 20. After being listed on Binance, KAITO surged to the $1 level.

Airdrop and Token Allocation

Positioning itself as the “ultimate Web3 information platform,” Kaito AI is gearing up for its first airdrop event. In this phase, 10% of the total supply has been allocated to early community members and ecosystem participants.

On February 20, the platform shared the following statement on X:

“Initial Community and Ecosystem Claim – 10%. This allocation includes the initial Kaito Yapper community, Genesis NFT holders, and ecosystem partners.”

Additionally, 56.6% of the total supply is allocated to the community and ecosystem, with 19.5% specifically reserved for long-term airdrops and incentives.

Binance Listing and Price Movement

Binance listed KAITO with the KAITO/USDT, KAITO/BTC, and KAITO/ETH trading pairs, leading to a rapid price surge to $1.

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While a Binance listing often boosts a project’s liquidity, initial selling pressure is common, especially for airdrop-based projects.

Tokenomics Concerns and Sell-Off Pressure!

Some analysts believe that the large insider allocation in the tokenomics could lead to selling pressure after the airdrop. Marcin Kazmierczak, co-founder of RedStone, a blockchain oracle firm, highlighted Kaito’s impact on the crypto marketing industry:

“I don’t know a single serious crypto marketer who doesn’t use Kaito’s stack. Previously, marketing was all about views and impressions. However, Kaito introduced a new metric, ‘Smart Followers,’ which allows tracking how many respected or active crypto accounts interacted with or followed a specific account.”

However, on-chain investigator RunnerXBT revealed that 43.3% of the total supply is allocated to insiders, including 35% to the team and 8.3% to early investors. This raises concerns about the long-term price movement of the token.

Will KAITO Face a Major Sell-Off?

Kaito AI’s tokenomics and insider allocations have sparked debates regarding potential sell-off risks post-airdrop. However, with Binance listing, KAITO has reached $1, and its long-term performance will depend on community support and project development.

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