Just like Wano where they are touted as being fearful when it turned out it’s because of one man from centuries ago lol. Because they give off that similiar tone of being powerful, I think they got the title from a legend.
Just can’t picture them being the strongest nation in the world when they all get low diff by admirals.
There was Kaido and Oden. They probably didn't know that Oden was already dead or if he joined forces with Kaido. Nor did they know if they had someone like prime Hyougoro sticking around. Akainu himself admits that they don't know how strong the Wano samurai are currently.
He got chained and is still imprisoned so that gives an indicator of his strength. I agree it’s someone from Jarul’s era because of how they’re described as the hero of the pirates in plural tense. Also from last chapter, Ripley hyped them as legends from century ago.
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More the reason to question why WG with all their might haven’t touched Elbaf all those years.
Again, they didn't know if Loki was imprisoned or if he was the current King of Elbaf (the holy knights teleporting directly to King Harald's castle is a indication that they bet on the latter)... his bounty suggests that he's an immense threat to the WG (it's higher than BB's first bounty, when he was already a Yonko) and, if the Elbaf warriors managed to imprison him, this means that they're pretty strong collectively (even without Dorry and Brogy). They also didn't know Dorry's and Brogy's whereabouts (or if they choose to support Loki).
Yeah, you can call them incompetent 'cause they have the Cipher Pols to gather info and all of that, but that's probably the reason.