WLFI's Locked Token Mystery Sparks $1.9B Selling Pressure Fears

The circulating supply of WLFI (World Liberty Financial) at its Token Generation Event (TGE) is significantly lower than expected, with only 65.5% of the presale tokens transferred to the Lockbox contract for activation. As of 8 PM on the day of the report, the Lockbox contract had received 16.395 billion WLFI tokens, leaving the remaining 80% of tokens in an unclear unlocking process [1]. This has raised concerns about the potential volatility and market pressure from early liquidity. Analysts estimate that the TGE circulating supply is approximately 5 billion tokens, or 5% of the total supply, which at the current Binance futures price of $0.3858, translates to a selling pressure of approximately $1.93 billion [1]. If the unactivated tokens are indeed locked, the circulating supply may be reduced to 3.68 billion tokens, or $1.42 billion in value.

The token’s fully diluted valuation (FDV) has been calculated at $38.58 billion based on the current price and total supply [1], a figure that is 1.62 times the FDV of Chainlink (LINK). This high valuation is largely attributed to the involvement of DWF Labs, which invested $25 million to acquire 250 million tokens at $0.10 per token [1]. DWF Labs is also expected to act as a market maker for WLFI, leveraging its prior experience with USD1, a stablecoin backed by the same platform.

Market participants are closely watching the token’s open interest, which has reached $825 million according to Coinglass data [1]. Binance holds over 50% of this open interest, indicating a slight dominance in long positions. The high open interest suggests significant speculative activity, as traders anticipate the token’s performance following its launch on September 1 [2].

In addition to institutional backing, World Liberty Financial has attracted attention from other investors, including venture capital firms and Nasdaq-listed fintech companies [3]. Aqua One Fund invested $100 million at $0.125 per token, while ALT5 Sigma committed $1.5 billion at $0.20 per token to create the token’s first crypto treasury [3]. These developments reinforce the project's credibility and provide a strong foundation for its long-term utility.

Market experts have also offered price predictions for WLFI. Virtual Bacon, a market analyst, has set a price target of $1, which would equate to an FDV of $100 billion [3]. This would represent a 276% increase from current futures pricing and position WLFI as one of the most successful tokens of the cycle. The prediction is based on the token’s DeFi utility, institutional support, and potential regulatory tailwinds such as the recently passed GENIUS Act for stablecoins [3].

The token’s performance in pre-market trading has also been notable, with prices exceeding $0.40, a 40% increase on the day [1]. This surge highlights strong market sentiment and anticipation for the official launch. However, traders are advised to remain cautious, as the unactivated tokens could influence post-launch liquidity and volatility.

Source: [1] WLFI TGE circulation may reach 5 billion FDV nearly US$38.6 billion (https://www.odaily.news/en/newsflash/445900) [2] Analyst: It is still unclear how the remaining 80% of WLFI... (https://www.panewslab.com/en/articles/74783ccf-6ae5-4904-bbd2-88fc1fa8d262) [3] World Liberty Financial (WLFI): Expert's Price Prediction... (https://www.mitrade.com/insights/news/live-news/article-3-1074756-20250828)