Whale Unlocks $70M in WLFI Tokens as DeFi Platform Gears Up for Massive TGE

Generated by AI AgentCoin World
Sunday, Aug 31, 2025 9:40 am ET2min read
Aime RobotAime Summary

- Whale investor unlocks $70M in WLFI tokens, part of a $15M USDC investment in Trump-linked DeFi platform.

- DWF Labs invests $25M in WLFI, acting as market maker for USD1 stablecoin.

- WLFI’s TGE could see $1.93B sell-off if all tokens activated, though discrepancies may reduce impact.

- Lockbox mechanism aims to mitigate volatility from large token unlocks, stabilizing market conditions.

A major whale investor participated in the first round of the public sale of World Liberty Financial (WLFI) tokens, committing 15 million

to secure 1 billion WLFI tokens. The investor is set to unlock and claim 200 million of these tokens tomorrow, which are valued at approximately $70 million based on current market conditions [1]. This move highlights significant participation from high-net-worth individuals in WLFI’s token sale, which is part of a broader public offering that has attracted a range of institutional and retail investors.

The WLFI token is part of the ecosystem of World Liberty Financial Inc., a decentralized finance (DeFi) platform associated with the Trump family, which also launched the stablecoin USD1 in March 2025. USD1 is designed to maintain a 1:1 peg with the U.S. dollar and is currently listed on major exchanges including Binance and

. As of the latest available data, the stablecoin has a market capitalization of $2.4 billion, with a fully diluted valuation (FDV) of $2.4 billion. The circulating supply of USD1 is 2.4 billion tokens [2].

The whale’s investment is not an isolated event. According to on-chain analysis, WLFI has seen strong initial participation in its presale rounds, with 25 billion tokens sold across the first two public sale rounds. This accounts for 20% of the total token supply of 100 billion. However, as of the latest monitoring, only 65.5% of the presale tokens have been activated within the Lockbox contract, which is a mechanism used to gradually release tokens over time. The slow activation of tokens suggests that some participants may still be in the process of transferring their holdings into the system [1].

The potential market impact of these token unlocks is considerable. If all tokens are activated and transferred to the Lockbox, the total gross emissions (TGE) would amount to 5 billion tokens, or 5% of the total supply. Based on the current Binance contract price of $0.3858, this would equate to a sell-off of approximately $1.93 billion. However, recent analysis by Tokenomist suggests that the actual sell-off could be lower due to discrepancies in the smart contract holdings of early presale participants. If the share of early participants is significantly less than expected—approximately 1.843 million tokens instead of the expected 6.57 billion—then the TGE circulation would be reduced to 3.68 billion tokens, or $1.42 billion at the same valuation [1].

Investor activity in WLFI has also attracted attention from major market participants. DWF Labs, a well-known crypto market-making firm, invested $25 million to acquire 250 million tokens at a cost of $0.1 each and is currently acting as a market maker at USD1. This involvement suggests that DWF sees long-term potential in the WLFI project, both in terms of price appreciation and liquidity provision.

The whale's decision to unlock 200 million tokens tomorrow will likely be a key event for the market, as it could influence short-term price movements and investor sentiment. Given the large value associated with these tokens—$70 million at current pricing—any significant selling pressure could have a measurable impact on the market. However, the gradual release of tokens through the Lockbox mechanism may help mitigate such volatility, assuming market conditions remain stable. The broader implications of these token unlocks will depend on the overall demand for WLFI tokens and the macroeconomic environment in the crypto market.

Source:

[1] Analysis: Currently, only 65.5% of WLFI presale tokens ... (https://www.chaincatcher.com/en/article/2202174)

[2] World Liberty Financial USD Price, USD1 Price, Live ... (https://www.coinbase.com/price/usd1-wlfi)