- WLFI token launched on major exchanges on September 1, 2025, with an initial valuation exceeding $30 billion, backed by the Trump family.
- Partial token unlock released 20% of presale allocations, leading to significant price volatility and a drop from $0.40 to around $0.26.
- Derivatives surge saw open interest near $1 billion, reflecting high speculation, while the Trump family’s stake surged to $5 billion post-unlock.
- Mixed market reactions highlight potential regulatory discussions and risks for retail investors due to high FDV and insider holdings.
The Trump family’s cryptocurrency venture, World Liberty Financial (WLFI), officially launched its governance token on September 1, 2025, marking a high-profile entry into the DeFi space. The token, which raised $550 million from over 85,000 investors during its presale, debuted with a fully diluted valuation (FDV) surpassing $30 billion, positioning it among the largest crypto launches of the year.
WLFI aims to bridge traditional finance and DeFi, featuring tools like the USD1 stablecoin pegged 1:1 to the US dollar. Trading commenced on platforms including Binance, OKX, and Bybit, with initial prices peaking at $0.40 before tumbling up to 55% to $0.26 amid heavy selling pressure. The launch coincided with a partial unlock of 24.6 billion tokens—20% of presale allocations—introducing significant liquidity and volatility. Derivatives trading volumes exploded by 530% to $4.6 billion, with open interest approaching $1 billion before settling at $887 million.
Market impact was immediate, with the Trump family’s holdings, including 22.5 billion tokens via DT Marks DEFI LLC, surging to a paper value of $5 billion post-unlock. Early backers, including notable figures like Justin Sun who claimed $200 million in allocations, reported substantial gains, though Sun stated he is “not selling.”
However, the token’s performance drew criticism for potential insider advantages, with only 5% of supply initially tradable. Analysts from Compass Point highlighted risks, warning that the high FDV and unlock structure could “decimate retail traders” due to limited supply and centralized governance.
“Big day – @WorldLibertyFi just launched the $WLFI token,” posted Donald Trump Jr. on X, reflecting family enthusiasm.
Community sentiment on X was mixed, with users noting hype-driven pumps but cautioning against dumps from unlocks. One X post from @booba_xbt emphasized, “Insiders win, retail is exit liquidity.”
In a balanced view, while WLFI’s endorsement could influence pro-crypto regulations, concerns over ethics and conflicts persist, especially with the family’s controlling stake. Compared to other DeFi tokens like UNI (Uniswap’s governance token) or stablecoins such as DAI, WLFI’s political ties add unique risks.
Chainlink (LINK), another DeFi staple for oracles, underscores the sector’s reliance on real-world integrations that WLFI aims to emulate.
The project proposed a token burn program using protocol fees to address supply concerns, potentially stabilizing future prices. As trading volumes surpassed XRP’s on launch day, WLFI’s trajectory will likely shape discussions on celebrity-backed crypto ventures.
For more on WLFI’s market developments, see the related note at
https://cryptopress.site/crypto/trump-linked-wlfi-token-derivatives-surge-to-near-1b-open-interest-ahead-of-unlock/.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
© 2024 Cryptopress. For informational purposes only, not offered as advice of any kind.
