The price of the Aave token significantly fell amid rumors regarding a new token allocation from World Liberty Financial. This sparked debates within the crypto community.
Rumors of Token Allocation
Reportedly, the price of the Aave token dropped over 8% following rumors that the decentralized finance (DeFi) protocol would receive a different token allocation from World Liberty Financial (WLFI). The WLFI team stated that the claim that ‘Aave will receive 7% of the total WLFI token supply’ is false and fake news.
Aave Founder’s Reaction
Aave founder Stani Kulechov called the proposed deal ‘the art of the deal.’ He also indicated that the terms of the proposal were still valid. Following the rumors, the token fell from about $385 to $339 before rebounding to about $352.
Rise in DeFi Interest
The rumors regarding the arrangement between Aave and WLFI come amid a renewed interest in DeFi and growing institutional involvement. The total value locked (TVL) in DeFi protocols is currently over $167 billion, approaching the all-time high of over $212 billion from December 2021.
The situation surrounding the Aave token highlights significant concerns raised by rumors of new token distributions in the DeFi space, coinciding with increasing interest from institutional investors.
