WLFI, This Trump-Backed Token, Debuts With A $40B Valuation, And Here Are What You Need To Know About It

A cryptocurrency project deeply tied to the Trump family is launching its token on the public market, which is not only a major event in the crypto world but also the ultimate test of Trump's influence in the fintech sector.

On September 1, the governance token WLFI of the World Liberty Financial project, which is publicly backed by the Trump family, will officially begin trading. At 12:00 UTC, the Token Generation Event (TGE) will commence, allowing early investors to unlock and sell 20% of their total token holdings, which accounts for approximately 5% of the total token supply.

This debut will take place on major cryptocurrency exchanges such as Binance and Coinbase, attracting significant market attention. Based on the current futures price range of $0.20 to $0.30, WLFI's fully diluted valuation has already exceeded $40 billion, enough to rank it among the top 45 cryptocurrencies by market capitalization.

Estimates suggest that the value of tokens held by Trump himself through affiliated entities could exceed $6 billion, surpassing previous estimates of his net worth by Forbes.

These developments come at a time when the Trump family's influence in the crypto space is growing. Since Trump's return to the White House, he has signed a stablecoin bill, and his sons have also become deeply involved in crypto businesses. The launch of WLFI trading will be the first comprehensive market test of this highly politically charged financial innovation product.

What Exactly Is WLFI?

WLFI is the governance token of the decentralized finance project World Liberty Financial, with a total supply of 100 billion tokens. The project was established in September last year under the guidance of real estate magnate Steve Witkoff and his son Zach, with co-founders including crypto industry figures Chase Herro and Zak Folkman.

The Trump family holds a central role in the project. Trump himself is listed on the project's website as an "Honorary Emeritus" member and "Chief Crypto Advocate," while his sons Donald Trump Jr. and Eric Trump serve as "Web3 Ambassadors." DT Marks DEFI LLC, an entity linked to the president and his family members, holds a 38% stake in World Liberty Financial's holding company and owns 22.5 billion WLFI tokens.

The project's technical team is also noteworthy, including seasoned professionals such as Rich Teo, founder of the stablecoin company Paxos, and Corey Caplan, co-founder of the DeFi platform Dolomite.

How High Is the Token's Valuation?

Market expectations for WLFI's valuation are extremely high.

In two token sales conducted in October 2024 and January 2025, WLFI tokens were priced at $0.015 and $0.05, respectively, raising a total of $550 million. On decentralized platforms like Whale Market that offer pre-listing trading, WLFI's futures price has been trading in the range of $0.20 to $0.30.

According to Cryptonews, if calculated based on the current futures price, WLFI's fully diluted valuation (FDV) has already surpassed $40 billion. DT Marks DEFI LLC, the entity linked to Trump, holds 22.5 billion WLFI tokens, with Trump personally holding 15.75 billion tokens estimated to be worth over $6 billion. This figure suggests that digital assets may have become a significant component of Trump's wealth structure.

What Makes the Project's Design Unique?

WLFI's massive valuation is primarily built on its three-pillar design: "financial foundation, market dynamics, and macro narrative."

First is its solid financial foundation. According to an analysis by the WeChat public account "Weissman Notes," the stablecoin USD1 within the WLFI ecosystem is 100% backed by high-credit real-world assets (RWA), with approximately 85% of these assets being government money market funds. The reserves are managed by the U.S.-regulated custodian BitGo, with independent verification reports provided by the accounting firm Crowe LLP. WLFI acts solely as the brand owner. This "separation of operations and branding" design significantly reduces systemic risk.

Second is its unique market dynamics mechanism. Reports indicate that the Nasdaq-listed company ALT5 Sigma has committed to acquiring up to $750 million worth of WLFI tokens. According to ALT5's filing with the U.S. Securities and Exchange Commission (SEC), this acquisition commitment has "no specific time or price restrictions," which an analyst from The Block described as a "strategic arsenal" for long-term goals, potentially used to stabilize prices during market volatility or deter short sellers.

Finally, there is its macro narrative. WLFI is seen as a model showcasing "U.S.-compliant innovation" to global regulators. In the current context of the U.S. pushing for cryptocurrency compliance, this identity, deeply aligned with regulatory trends, grants WLFI a significant "regulatory certainty" premium.

Why Only 20% of Tokens Are Being Released?

According to the unlock rules, only early investors who purchased tokens in the presale can unlock 20% of their holdings, while the shares allocated to founders, team members, and advisors will remain locked. This arrangement is viewed by the market as a carefully crafted strategy.

Messari analyst Dylan Bane described this as a "standard float management tactic." In an interview with Bloomberg, he stated, “By restricting early liquidity, the project reduces near-term sell pressure and keeps prices more stable. It also boosts optics.”

However, some traders have a different perspective. Morten Christensen, a trader holding WLFI tokens, believes that "a low float makes it easier to pump the price," calling it "a great, explosive cocktail."

Retail investors' expectations are also divided. In a survey conducted within a WLFI holder community, some small holders plan to sell when the price reaches $0.47, while large holders expect the price to reach $1 or higher, with some even joking that their goal is to buy a Lamborghini.

Who Are the Big Players?

WLFI's investor list combines capital and industry influence.

In addition to the Trump family entity holding a massive number of tokens, according to information jointly disclosed by Accountable and Bloomberg, Tron founder Justin Sun is one of the project's largest independent investors. The TRON DAO, controlled by him, subscribed to 3 billion WLFI tokens for $30 million in November 2024, at a price of just $0.01 per token, far below the market price at the time.

Recently, the Web3-native fund Aqua1 Fund announced a strategic purchase of $100 million worth of WLFI tokens. Its on-chain address holds 800 million tokens, replacing Justin Sun as one of the largest external token holders.

Additionally, Abu Dhabi-based market maker DWF Labs spent $25 million to purchase the tokens. Other notable investors include Mike Dudas, founder of 6th Man Ventures, among others.

What Risks and Controversies Exist?

Despite its sophisticated design, WLFI's launch is accompanied by risks and ethical scrutiny.

As pointed out by CryptoNews, the GENIUS Act, signed by Trump to regulate stablecoins, does not include provisions to prevent conflicts of interest. This has raised concerns about potential ethical issues behind the simultaneous launch of WLFI, in which his family is deeply involved.

For investors, WLFI presents a unique risk-return profile: its systemic collapse risk is significantly reduced due to its solid RWA foundation, but market dynamics risks, along with its heavy reliance on macro policy trends, have become new focal points of concern.

The project's long-term value depends not only on its own operations but also on unpredictable political and regulatory developments. As trading officially begins, the market will undergo its first comprehensive test of this complex financial innovation product.