"Trump-Backed Token's Unlock Ignites $1B Betting Frenzy"

Open interest in derivative contracts for the Trump family-affiliated World Liberty Financial (WLFI) token has surged to near $1 billion in the hours preceding a partial token unlock, according to CoinGlass data. The open interest climbed to $950 million in early trading on Monday, before retreating to $887 million, marking a 45% increase over the prior 24 hours. Simultaneously, trading volume for WLFI derivatives surged by 535% to $4.54 billion, making it the fifth-most traded crypto derivative in the same period [1]. This level of speculative activity suggests strong market anticipation ahead of the unlock event, which is set to release approximately 5% of the token supply [1].

The price of WLFI has declined to around 34 cents as of Monday, down from a high of over 40 cents earlier in the week [1]. If the token maintains this valuation, it could achieve a fully diluted market cap of $34 billion based on its 100 billion-token supply, potentially placing it ninth in the global cryptocurrency rankings, displacing Tron (TRX) and Dogecoin (DOGE) [1]. At current prices, the unlocked portion of the token supply—approximately 5 billion tokens—would carry a market capitalization of $1.7 billion. This dynamic highlights a potential divergence between the token's fully diluted value and its actual circulating valuation, a common feature in speculative crypto markets [1].

Binance has dominated WLFI derivative trading, capturing half of the total 24-hour trading volume at $2.22 billion and over 10.5 million trades. The exchange also holds nearly half of the open interest, with $436.5 million in outstanding contracts [1]. OKX followed as the second-largest participant, recording $917.5 million in trading volume and nearly 1.1 million trades. The majority of trading activity has been concentrated in perpetual futures and leveraged positions, with some accounts using 3x leverage to amplify gains [2]. For example, a whale holding 8.6 million WLFI tokens on Hyperliquid recently reported a $1 million gain [2]. These leveraged positions reflect both the potential for high returns and the elevated risks associated with the token's price volatility.

World Liberty Financial announced the unlocking of 20% of early investor tokens on Sept. 1, a decision made after a mid-July governance vote approved the token's public trading [1]. The unlock event was part of a broader rollout that began with token sales targeting accredited U.S. investors. The company raised $550 million through two distinct sales rounds—$300 million in October 2024 and $250 million in March 2025—offering tokens at 1.5 cents and 5 cents, respectively [1]. These early investors stand to gain over 14x their initial investments based on current prices. The Trump family's involvement in the project is notable, with Donald Trump serving as the “Chief Crypto Advocate” and his sons holding roles as “Web3 Ambassadors.” The family's affiliated firm receives 75% of the project’s revenue, raising questions about governance and profit distribution [1].

The token's potential to enter the top 10 by fully diluted market value has drawn attention from both retail and institutional investors, with major exchanges like Kraken and Binance preparing for its listing [1]. However, concerns persist regarding the token's speculative nature and the influence of the Trump family's ownership stake. Critics have pointed to the Trump family’s previous crypto ventures, such as the TRUMP token, which saw rapid price fluctuations and regulatory scrutiny. The WLFI token’s success will depend on how it balances retail interest with institutional confidence, particularly as it faces a regulatory environment increasingly focused on transparency and compliance [4]. Despite the hype, the market remains cautious, with some investors hedging positions and others anticipating a significant price correction after the initial unlock [6].

Source: [1] Trump's WLFI Contracts See Trading Spike Ahead of Unlock (https://cointelegraph.com/news/trump-wlfi-derivatives-near-1b-open-interest-hours-before-unlock) [2] World Liberty Financial's WLFI Open Interest Tops $800 (https://www.mitrade.com/insights/news/live-news/article-3-1082960-20250831) [3] Data: WLFI's total network contract open interest reached (https://www.chaincatcher.com/en/article/2202288) [4] WLFI derivatives volume jumps 400% ahead of World (https://www.theblock.co/post/368856/wlfi-derivatives-volume-jumps-400-ahead-of-world-libertys-first-token-unlock-on-monday) [5] WLFI Derivatives Explode 500% Ahead Of Token's Sep 1 (https://cryptonews.com/news/wlfi-derivatives-world-liberty-financial-token-unlock/) [6] WLFI is about to go live but has been cut in half before (https://www.chaincatcher.com/en/article/2200960)