The price of the Aave (Aave) Token fell by more than 8%on Saturday, after rumors that the Decentralized Finance (Defi) protocol would receive a different token allocation than World Liberty Financial (WLFI), a Defi -platform supported by members of the US President Donald Trump.
“The WLFI team told Wublockchain that the claim that ‘Aave will receive 7% of the total WLFI Token Supply’ is incorrect and fake news,” said Blockchain reporter Colin Wu, a debate about the rumor and the token scheme on social media.
Wu referred to a WLFI community proposal from October 2024, with a regulation in which the Aave Decentralized Autonomous Organization (DAO), responsible for arranging the protocol, 7% of the WLFI Governance Token’s Circulating Supply and 20% of the Protocol would receive an AAVE.
A price of a token drops after rumors. Source: Tradingview
AAVE founder Stani Kulechov called the proposal ‘the art of the deal’ on Saturday and indicated in a separate position that the conditions of the proposal were still valid. After rumors, the token of Aave from about $ 385 fell to a low $ 339 low before he returned to around $ 352.
Cointelegraph reached for World Liberty Financial and Aave spokespersons, but received no response from the publication.
Rumors with regard to the regulation between Aave and World Liberty come in the midst of a renewed interest in Defi and growing institutional involvement in the crypto -Niche.
Related: $ 70b Defi Protocol Aave goes live on APTOS in ecosystem expansion
The Defi sector increases as settings notice
The total value locked (TVL) in Defi protocols is currently more than $ 167 billion, according to Defillama, and from December 2021 is approaching the all time of more than $ 212 billion.
Defi TVL rose sharply after the results of the American elections in 2024 pending a friendlier regulatory climate for cryptocurrencies in the country.
Defi TVL rose sharply after the 2024 elections in the United States. Source: Defillama
Institutional investors, including banks, asset managers, companies and financial service providers, have increasingly become involved in Crypto and Defi, which forms many of the stories during the current market cycle.
This involvement has fueled a debate under the crypto community on the attack of government regulations on permissionless protocols and the potential conquest of Defi by traditional financial institutions.
Magazine: How Ethereum Treasury companies can pop up ‘Defi Summer 2.0’
