AAVE Drops 5%+ After Alleged WLFI Team Member Dylan_0x Denies 7% Token Allocation — KOL Urges Lawsuit

COINOTAG reported on August 23 that an individual using the handle Dylan_0x publicly denied involvement with the WLFI Wallet team and the proposal titled “Aave to Receive 7% of WLFI Total Token Supply.” COINOTAG also noted there is no public channel to independently verify the identity of Dylan_0x, underscoring the need for rigorous due diligence.

Market data showed a brief AAVE price drawdown from $385.99 to $365, a short-term decline in excess of 5%, coinciding with the denial and related commentary; this indicates a sensitivity of Aave market sentiment to governance and token allocation news rather than fundamental protocol changes.

Influencer commentary, including remarks attributed to crypto KOL @Luyaoyuan1, referenced historical precedents around token distribution and revenue-sharing disputes. Investors are advised to prioritize verification of official channels and robust asset protection practices when assessing exposure to governance-driven volatility.