Trump's WLFI Token Soars on Exchanges—Then Crashes Into Uncertainty

World Liberty Financial’s (WLFI) token has drawn significant market attention following its debut on major cryptocurrency exchanges, with a whale reportedly wagering $13.29 million on the asset in early trading. The WLFI token, associated with U.S. President Donald Trump and his family, launched with a valuation exceeding $30 billion before experiencing a sharp decline. On its debut, the token reached a peak price of $0.31, but soon fell to $0.21 as early sell pressure emerged, according to CoinGecko data. By Tuesday, it had partially rebounded to $0.23, reflecting the volatile nature of its market performance.

World Liberty Financial issued 24.6 billion tokens at launch, representing approximately 25% of its total supply of 100 billion tokens. The distribution included allocations for the project's ecosystem, treasury, liquidity, and public sale participants. The initial unlock allowed 20% of tokens purchased in the early rounds to be released, rewarding early investors while keeping the remaining 80% locked under a vesting schedule to be determined by community governance. This approach aims to balance short-term incentives with long-term sustainability, though critics have raised concerns about potential price manipulation and uneven profit distribution.

To stabilize the token's price and restore confidence, the WLFI team proposed a buyback-and-burn program funded by liquidity fees. The initiative plans to use fees from WLFI’s liquidity positions on Ethereum, Binance Smart Chain, and Solana to repurchase tokens from the market and permanently remove them from circulation. According to the project’s governance proposal, this mechanism aligns token supply with long-term growth objectives by reducing circulating supply over time. The team also rejected alternative proposals that would split fees between treasury and burns, choosing instead to allocate 100% of liquidity fees to token destruction for maximum impact.

The token’s trading activity was further highlighted by a surge in open interest in derivative contracts, which reached nearly $950 million before the official unlock. This figure dropped slightly to $887 million on the day of the unlock, indicating strong but fluctuating demand. Additionally, WLFI's treasury held $13.78 million in TRX, while Tron founder Justin Sun, a vocal supporter of the project, owns approximately $693 million worth of WLFI tokens. His long-term stake in the project has been reinforced through vesting arrangements, signaling potential support for price stability despite early volatility.

Despite initial optimism, the token has faced challenges, including a 12% drop in value shortly after its launch peak. Analysts attribute this to sell-offs from presale wallets that moved 160 million WLFI tokens to Binance, collectively valued at $51.2 million. These movements underscore the influence of early investors on market dynamics, raising questions about the sustainability of WLFI’s valuation. World Liberty Financial's market capitalization currently stands at around $7 billion, placing it 31st among digital assets. While the project has drawn high-profile endorsements, its success will depend on ongoing governance decisions and the broader market's perception of its long-term viability.

Source: [1] Trump Family's WLFI Token Debuts 5 To 15 Times Above... (https://www.forbes.com/sites/zacheverson/2025/09/02/trump-crypto-token-wlfi-world-liberty-financial/) [2] Trump-backed WLFI to unlock 24.6B tokens at launch (https://cointelegraph.com/news/trump-backed-wlfi-unlock-27-billion-tokens-coinmarketcap) [3] Trump Crypto News: World Liberty Financial (WLFI) Team... (https://www.coindesk.com/markets/2025/09/02/trump-linked-world-liberty-team-floats-buyback-and-burn-plan-as-wlfi-sinks) [4] New Cryptocurrency Token WLFI Launches with Major... (https://news.ssbcrack.com/new-cryptocurrency-token-wlfi-launches-with-major-support-from-chinas-crypto-community/) [5] Trump-Backed WLFI Token Debuts With US$30B Valuation... (https://cryptonews.com.au/news/trump-backed-wlfi-token-debuts-with-us30b-valuation-as-binance-leads-listings-130639/)