Day: August 25, 2025

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Former U.S. President Donald Trump and his family have unveiled a bold new initiative: a Trump crypto venture called World Liberty Financial. This project, co-founded by Trump and his sons, aims to capitalize on the booming cryptocurrency market. But while the marketing is strong, experts are cautioning investors about potential pitfalls.

What Is the Trump Crypto Venture?

Unlike many high-profile cryptocurrency projects that focus on Bitcoin (BTC) accumulation, World Liberty Financial is centered on WLFI tokens. These tokens are scheduled to become tradeable in September. The venture has reportedly raised $1.5 billion through a partnership with ALT5 Sigma (CNSX:ALTS), a publicly traded blockchain firm.

As part of the arrangement, Eric Trump has taken a seat on ALT5 Sigma’s board. The Trump family owns a large stake in WLFI and will receive three-quarters of proceeds from token sales.

Experts Raise Red Flags

Despite the hype surrounding the Trump crypto venture, several financial analysts have expressed concerns. WLFI tokens provide very limited control over the USD1 stablecoin that the company promotes, leaving questions about their intrinsic value.

Critics have labeled the business model an “infinite money glitch,” referring to a practice of issuing new tokens or shares at premium prices to acquire assets. While this can generate quick capital, Owen Lamont, portfolio manager at Acadian Asset Management, told The Wall Street Journal:

“This phenomenon violates every principle of finance.”

Experts warn that this strategy often leads to overvaluation and leaves investors holding risky assets.

Pattern of Trump-Backed Projects

Skepticism about the Trump crypto venture is also fueled by the performance of previous Trump-branded financial ventures. Trump Media & Technology Group (NASDAQ:DJT), operator of the Truth Social network, has seen its stock tumble roughly 73% from its peak.

Similarly, the Trump-themed $TRUMP memecoin fell about 90% from its highs, and the $MELANIA token has performed even worse, according to analysts.

One exception has been Trump’s Digital Trading Cards NFT collection, which features cartoonish depictions of the former president as a superhero, astronaut, and sports icon. Initially sold for $99, the NFTs’ floor price now exceeds $200. However, some buyers who paid as much as $800 for individual cards are still facing steep losses.

Why Investors Are Cautious

The biggest concern with the Trump crypto venture is that it may serve more as a political loyalty signal than a true investment opportunity. As The Wall Street Journal noted, “Clearly the main reason to want WLFI is to show public support for Trump.”

Without clear use cases, strong governance structures, or transparency around token economics, WLFI could face the same volatility and long-term struggles as previous Trump-backed digital assets.

Will the Trump Crypto Venture Succeed?

Despite skepticism, the Trump brand still has strong appeal among supporters. If WLFI gains traction among his political base and manages to provide meaningful utility, it could carve out a niche in the crowded crypto market.

However, experts recommend that potential investors approach WLFI with caution, conduct thorough due diligence, and avoid allocating funds they cannot afford to lose. As history shows, speculative projects tied to celebrity figures often experience extreme volatility.

Bottom Line

The Trump crypto venture with WLFI tokens is generating headlines and raising capital quickly, but the red flags are hard to ignore. Between its concentrated benefit to the Trump family, its unclear token utility, and its resemblance to past overhyped projects, investors should remain vigilant.

For those considering WLFI, understanding the risks is critical. Whether this project becomes a success or another cautionary tale remains to be seen, but experts emphasize that sustainable growth in crypto requires more than branding—it needs real value and utility.

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The crypto flash crash resumed on Aug. 25, erasing much of the market’s weekend gains. Bitcoin (BTC) and Ethereum (ETH) plunged as liquidations surged and bearish technical patterns emerged, raising fears that the recent rally may have been a dead-cat bounce.

Crypto Flash Crash: Market Overview

After Federal Reserve Chair Jerome Powell’s dovish remarks at Jackson Hole sparked optimism last week, cryptocurrencies rallied. However, Monday’s crypto flash crash wiped out much of those gains.

Bitcoin fell 1.9% to $111,400 from a weekend high of $117,000. Ethereum retreated 2.4% to $4,640, down from just under $5,000 resistance. The global cryptocurrency market cap dropped 2.9% to $3.86 trillion, down sharply from the year-to-date peak above $4.1 trillion.

Other altcoins also suffered: Dogecoin (DOGE) declined 5.78%, Solana (SOL) dropped 4.72%, and Chainlink (LINK) slid 4.8%, reflecting broad selling pressure.

Surging Liquidations Trigger Crypto Flash Crash

One primary factor fueling the crypto flash crash is a spike in leveraged trade liquidations. Data from CoinGlass revealed liquidations surged 390% to $845 million over 24 hours, impacting more than 166,000 traders.

Ethereum bulls bore the brunt, with $304 million in liquidations, while Bitcoin traders saw $272 million wiped out. Dogecoin, Solana, and Chainlink also experienced heavy leveraged trade closures.

Liquidations occur when exchanges forcibly close leveraged positions to limit further losses. A wave of bullish liquidations often intensifies selling, creating a cascading effect on prices.

Simultaneously, the crypto derivatives market showed an 11.7% rise in futures open interest to over $1 trillion, alongside a 17% jump in the weighted funding rate. This combination triggered a long squeeze, exacerbating downward momentum.

Dead-Cat Bounce: A Bearish Trap?

Another reason analysts cite for the crypto flash crash is that the weekend surge may have been a dead-cat bounce (DCB). A DCB describes a temporary recovery in a broader downtrend, often luring traders into a bullish trap before prices resume falling.

Technical charts support this thesis. Bitcoin’s weekly chart shows a bearish rising wedge pattern connecting highs since March and lows since August of last year. With the wedge nearing its convergence point, odds of a downside breakout have increased.

BTC has also formed a double-top pattern around $123,500 and a bearish divergence, with indicators like the Relative Strength Index (RSI) and MACD trending lower despite recent rallies.

What’s Next for the Crypto Market?

The ongoing crypto flash crash underscores the volatile nature of digital assets, particularly in periods of high leverage and uncertain macroeconomic signals. While Powell’s remarks initially fueled optimism, broader market sentiment remains cautious.

If Bitcoin fails to hold key support levels near $110,000, analysts warn further downside is possible. Ethereum also faces risk if it fails to reclaim $5,000 with strong volume.

However, some bullish traders see the pullback as healthy profit-taking after an extended rally. Longer-term fundamentals like growing institutional adoption and blockchain innovation remain intact.

Conclusion: How to Navigate the Crypto Flash Crash

For investors, the crypto flash crash highlights the importance of risk management and avoiding excessive leverage. While the recent plunge raises concerns about a dead-cat bounce, it also offers opportunities for long-term buyers if support levels hold.

Monitoring liquidation data, derivatives market trends, and technical chart patterns will be critical in determining whether the market stabilizes or faces deeper corrections. As always, volatility remains a hallmark of crypto investing, making discipline essential for navigating the next market move.

Bottom line: The crypto flash crash has rattled traders, but it may also reset the market for healthier gains ahead if leveraged excesses unwind and fundamentals reassert themselves.

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• Core partner of LINE NEXT and Kaia DLT Foundation’s “Mini Dapp Station” at Japan’s largest Web3 conference
• Unveiling a new hybrid genre that combines casual match-3 puzzles with RPG growth mechanics
• Launch of teaser page for new product brand “BORA DEEPS” to strengthen user engagement within the BORA ecosystem

SEOUL, South Korea, Aug. 25, 2025 /PRNewswire/ — METABORA GAMES (CEO Choi Se-hoon), a leading blockchain game developer, announced today that it has unveiled its upcoming title ‘Puzzle & Guardians’ in partnership with Baligames (CEO Kim Young-woo) at WebX 2025, Japan’s largest Web3 event.

The two companies are participating as core partners of the Mini Dapp Station, co-hosted by LINE NEXT and the Kaia DLT Foundation, where they are showcasing gameplay videos, offering on-site demo opportunities, and engaging with global users until August 26.

‘Puzzle & Guardians’ is the first LINE Messenger-based mini Dapp game developed through the partnership between the two companies. The hybrid title combines the casual fun of a match-3 puzzle with RPG growth elements, incorporating with Web3 reward mechanisms to deliver a distinctive gameplay experience.

The co-launch partner, Baligames, is a rising Korean game studio founded by core developers behind global hits like the Anipang series. The studio, with extensive experience in mobile game development and live operations, became the first in Korea to secure strategic investment from Sky Mavis, the creators of Axie Infinity, a leading title in the global Web3 game space.

In addition, METABORA GAMES unveiled the teaser page for its new product brand, ‘BORA DEEPS’, at the event. Positioned as a key infrastructure to strengthen user engagement within the BORA ecosystem, ‘BORA DEEPS’ will gradually roll out a variety of services designed to create synergy between content and users.

As its first service, ‘QUEST’, a reward platform that integrates in-game missions with Web3 incentive systems, will be applied to Puzzle & Guardians and officially launched in line with the game’s release.

A METABORA GAMES representative commented, “We are delighted to showcase our upcoming Web3 game, developed in collaboration with a promising partner, to global users through participation in this prestigious global Web3 event. We will continue to strengthen our position as a core partner in producing and distributing competitive Web3 titles within the Dapp Portal, while gradually expanding our game lineup and enhancing the BORA tokenomics.”

About METABORA GAMES

METABORA GAMES is a leading blockchain game developer and the operator of the blockchain platform BORA. With its roots in casual game development and blockchain expertise, the company is driving innovation where Web2 and Web3 entertainment converge.

BORA is a next-level on-chain platform designed to enhance player engagement and experiences. The BORA ecosystem brings together partners across tokenomics, content, and blockchain technology, fostering collaboration throughout gaming, entertainment, and sports.

Through the BORA Network, METABORA operates the BORA Portal, which offers GameFi-optimized services such as NFT trading, token conversion, and DeFi features. With BORA listed on major global cryptocurrency exchanges, METABORA continues to enhance accessibility and expand the usability of its content across the Web3 landscape.

#Appendix
BORA DEEPS teaser page: https://intro.boradeeps.com/intro

Photo – https://megastockalert.com/wp-content/uploads/2025/08/image-3.jpg

View original content:https://www.prnewswire.co.uk/news-releases/metabora-games-and-baligames-to-participate-in-webx-2025-and-showcase-new-title-puzzle–guardians-302537282.html

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