Trump-Linked WLFI Airdrops Tokens to Fuel USD1 Growth Amid Regulatory Scrutiny

World Liberty Financial (WLFI) shares surged more than 20% in the past week as the crypto firm announced a $1.2 million token airdrop to early users of its USD1 stablecoin program, a move analysts say could further boost adoption of the Trump-linked digital asset. The company plans to distribute 8.4 million WLFI governance tokens across six major exchanges—including Gate.io, KuCoin, and MEXC—as part of its USD1 Points Program, which has already generated over $500 million in trading activity since launching in August, according to a Yahoo Finance report.

The airdrop, which rewards users for trading USD1 pairs and maintaining stablecoin balances, underscores WLFI's push to expand its loyalty ecosystem. USD1, the firm's dollar-backed stablecoin, now ranks as the sixth-largest stablecoin globally with a market capitalization of $2.94 billion, according to Cointelegraph. The initiative mirrors traditional loyalty programs like airline miles but applies them to crypto users, with future plans including DeFi integrations and staking incentives, as outlined in a Yahoo Finance article.

WLFI's price action has been volatile in recent months. The token currently trades at $0.14, down nearly 70% from its September all-time high of $0.46, but has shown signs of stabilization. Analyst Marzell noted in a recent report, in a Yahoo Finance analysis, that WLFI is "showing strong accumulation" after an extended correction, with key support levels at $0.14–$0.15 and a critical resistance at $0.19. A confirmed breakout above $0.19 could signal renewed bullish momentum, he said.

The airdrop also highlights WLFI's deep ties to Donald Trump's political and financial ecosystem. The USD1 stablecoin was previously used by Eric Trump to settle a $2 billion investment in Binance by Abu Dhabi's MGX firm, marking the first institutional adoption of the token, according to Cointelegraph. Meanwhile, the company's broader strategy to integrate USD1 into everyday transactions—via debit cards and expanded utility—aims to solidify its position in the crowded stablecoin market.

Critics, however, remain cautious. The Trump family's expanding crypto ventures have drawn regulatory scrutiny, with lawmakers recently pushing to restrict their financial activities. WLFI's recent buyback and burn plan—announced alongside the airdrop—may help stabilize the token's supply, but analysts warn that political and market risks remain significant, as earlier reported by Yahoo Finance.

World Liberty Financial has not disclosed specific timelines for future airdrop phases but emphasized that the loyalty program is "only the beginning" of its efforts to drive USD1 adoption, the Yahoo Finance article noted. With the Trump-linked stablecoin now a major player in the digital asset space, the success of these initiatives could determine whether WLFI maintains its current trajectory or faces renewed headwinds.