WLFI Token Falls 15% After Launch, Buyback-and-Burn Proposal Introduced
The WLFI token from World Liberty Financial, linked to Donald Trump, experienced significant price volatility after its launch. It initially traded above $0.30 but quickly fell by 15%–30%, stabilizing around $0.21–$0.24.
Key Points on Market Performance
- A large token unlock added approximately 25 billion WLFI to circulation, inflating the Trump family's paper holdings to an estimated $5 billion to $6 billion.
- Trading on platforms like Binance and OKX saw about $1 billion in volume within the first hour.
- Early investors were allowed to sell portions of their holdings, contributing to selling pressure.
Buyback-and-Burn Proposal
- The community proposed a buyback-and-burn program to use 100% of liquidity fees from multiple chains for purchasing and burning WLFI tokens.
- The goal is to reduce circulating supply and support long-term holders, though critics highlight that it may take years to impact supply significantly.
- Market cap figures varied widely, reflecting volatility despite initial high valuations.
Regulatory Scrutiny
- Connections to Trump have raised concerns about conflicts of interest and regulatory oversight.
- The project claims to be a private venture with governance rules, yet scrutiny remains high.
- Market participants are monitoring governance updates and potential implementations of the fee-to-burn plan closely.