Trump’s Crypto Empire Burns Tokens Amid Governance Turmoil

World Liberty Financial (WLFI) has experienced significant price volatility since its public trading debut on Monday, September 1, with the token briefly reaching a high of $0.331 before declining 3.8% to trade at just over 23 cents as of the latest data [1]. In response, the project announced a token burn of 47 million WLFI tokens on Wednesday, permanently removing them from circulation [1]. This represents approximately 0.19% of the token’s total supply, which currently stands at 99.95 billion tokens after the burn [1]. The burn was initiated through a transaction recorded on Etherscan and forms part of a broader strategy proposed by World Liberty Financial to implement a token buyback and burn program using protocol-owned liquidity fees [1].

The token’s decline reflects broader uncertainty in the crypto market, particularly for newly launched governance tokens, where early investors are often incentivized to offload their holdings quickly [2]. Despite the price drop, the Trump family’s stake in WLFI remains valued at approximately $5 billion, based on their holdings of 22.5 billion tokens [2]. The Trumps, alongside their sons Eric, Donald Jr., and Barron, co-founded World Liberty Financial, a project that also includes a stablecoin called USD1, which is pegged to the U.S. dollar [2]. The WLFI token grants holders the right to vote on governance decisions, a feature that distinguishes it from other tokens in the crowded crypto market [2].

The token’s launch has not been without controversy. Notably, WLFI’s co-founder and prominent crypto investor, Justin Sun, found his tokens unexpectedly frozen, preventing him from transferring or selling them [3]. Sun, who had previously invested $75 million in WLFI and attended a Trump-hosted event for top holders of the $TRUMP meme coin, took to social media to demand the unlocking of his tokens [3]. This incident has raised concerns over the centralization of governance and control within the project [3]. Galaxy Digital’s research team identified over 200 wallets with WLFI tokens that had similarly been restricted in their movement [3]. Such actions contradict the narrative of decentralization often associated with crypto projects and have led to skepticism from the broader community.

Analysts have pointed to the broader market dynamics contributing to the token’s volatility. Kevin Rusher, founder of RAAC, noted that the speculative trading surrounding WLFI highlights the crypto ecosystem’s ongoing struggles with maturity and trust [1]. Mangirdas Ptašinskas of Galxe added that the surge in WLFI trading had spiked Ethereum gas fees, raising questions about the readiness of the blockchain infrastructure for widespread adoption [1]. Nic Puckrin of Coin Bureau, however, emphasized that the price swing from $0.40 to $0.21 is not unusual for new token launches, with early hype often leading to sharp corrections as investors take profits [2].

In parallel, the U.S. Federal Reserve’s monetary policy has been a subject of intense political scrutiny under the Trump administration. The Fed has maintained a wait-and-see stance on rate cuts, despite pressure from the White House [4]. Recent studies by the Fed have identified inflationary impacts from tariffs and growing uncertainty around the administration’s deregulation and immigration policies [4]. The central bank’s independence remains a point of contention, with critics questioning the extent to which political pressures might influence its decisions [5]. While the Fed operates under a dual mandate to promote maximum employment and price stability, the tension between these goals has become more pronounced amid shifting economic conditions [5].

Source:

[1] World Liberty Burns 47M Tokens as WLFI Price Slides (https://cointelegraph.com/news/wlfi-token-burn-price-drop-world-liberty-financial)

[2] New crypto token boosts Trump family's wealth by $5 billion (https://www.cbsnews.com/news/trump-wlfi-world-liberty-financial-crypto-wealth/)

[3] Trump family's World Liberty Financial breaks with Justin Sun (https://www.axios.com/2025/09/05/trump-justin-sun-world-liberty-financial)

[4] Federal Open Market Committee (FOMC) (https://www.centralbanking.com/organisations/federal-open-market-committee-fomc)

[5] How the FOMC Really Works: Fed Structure, Tools & ... (https://vipwealthadvisors.com/insights/how-the-fomc-really-works-federal-reserve)