Trump’s crypto token flops, Ethereum centralization concerns: Finance Redefined

Despite the widespread anticipation, former United States President Donald Trump’s token launch failed to live up to expectations. After the first day of trading, the coin only amassed about $12.7 million worth of sales, leaving $287 million worth of tokens unsold.

In the wider crypto space, investors are growing concerned about Ethereum’s degree of centralization after two block builders produced over 88% of the mainnet blocks during the first two weeks of October.

Five reasons why Trump’s World Liberty Financial token crashed and burned

Former United States President Donald Trump’s token launch was something of a flop.

On Oct. 16, Trump launched his World Liberty Financial (WLFI) token. The token’s website claimed it would allow investors to gain voting rights over a future decentralized finance (DeFi) protocol. 

However, after almost a full day of trading, the token’s sales were tepid. As of 10:00 am UTC on Oct. 17, the token’s website showed that only 848.63 million WLFI ($12.7 million worth based on the presale price) had been sold, leaving an additional 19.1 billion coins ($287 million) unsold. The amount sold on the first day constituted just 4.24% of the total.

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Two builders produce 89% of Ethereum blocks in October, raising concerns

Two Ethereum block builders produced the majority of blocks during the first two weeks of October, raising concerns about centralization on the world’s second-largest blockchain network.

Ethereum block builders Beaverbuild and Titan Builder were responsible for 88.7% of all blocks produced over the past two weeks on the mainnet, according to Toni Wahrstätter, a researcher at the Ethereum Foundation.

Wahrstätter wrote in an Oct. 17 X post:

“This trend is primarily driven by the rise of private order flow (XOF), sold exclusively by certain apps. XOF reduces genuine competition among builders in the block auction, leading to a smaller pool of shared transactions.”

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Ledger users targeted by malicious “clear signing” phishing email

A new wave of scam emails is targeting Ledger users and attempting to steal their crypto.

The scam emails aim to convince users to activate a security feature called “Ledger Clear Signing” by Oct. 31 so they can continue using their Ledger device.

The emails — sent from addresses not associated with Ledger — direct users to a malicious link to activate the fake security feature. The phishing email says:

“To continue using your Ledger device securely, activating Clear Signing is mandatory starting November 1, 2024. This feature is essential in protecting your assets from phishing attacks and fraudulent activities that are becoming more sophisticated.”

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Jump Trading accused of crypto pump-and-dump in game dev’s suit

Crypto game developer Fracture Labs sued Jump Trading, accusing the firm of using its DIO gaming token to operate a pump-and-dump scheme. 

In the Oct. 15 suit filed in an Illinois District Court, Fracture Labs alleged that in 2021, it entered into an agreement with Jump as a market maker to assist with an initial offering of its DIO token on the crypto exchange Huobi, now HTX.

As part of the agreement, the game developer claimed it loaned 10 million DIO to Jump, worth $500,000, separately sending 6 million tokens, worth $300,000, to HTX.

HTX solicited online influencers to promote the DIO token after its launch. According to the complaint, the price then spiked to a high of $0.98, and the borrowed tokens were worth $9.8 million.

Jump then sold all the holdings, Fracture Labs claimed. The “mass liquidation” drove the price down to $0.005, and the trading firm profited millions before Jump allegedly rebought the tokens at a lower price.

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SUI price rally sparks $400-million insider selling allegations

The recent triple-digit rally of the Sui token has sparked allegations of insider selling among cryptocurrency investors despite its impressive price gains.

Sui (SUI) rose over 120% during the past month to trade at $2.25 as of 10:13 am UTC on Oct. 14. The token is up over 16% in the past week, according to Cointelegraph data.

However, allegations of insider selling have arisen despite the Sui token’s bullish price action. 

Wallets associated with the SUI initial coin offering (ICO) have reportedly sold more than $400 million worth of tokens during the rally, according to pseudonymous crypto analyst Light, who posted the information on X on Oct. 14.

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DeFi market overview

According to data from Cointelegraph Markets Pro and TradingView, the majority of the 100 largest cryptocurrencies by market capitalization ended the week in the green.

Of the top 100, memecoin Cat in a Dog’s World (MEW) was the biggest gainer, up over 51% on the weekly chart, followed by Ethena’s Ena (ENA) token, up over 40%, as the week’s second-biggest gainer.

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.