Trump-Backed WLFI Token Launches, Falls 12% to $0.24
World Liberty Financial (WLFI), a DeFi platform backed by former President Donald Trump, has launched its native WLFI token. Trading began on Monday with WLFI hitting a high of $0.33 and a low of $0.23 before settling around $0.24, marking a 12% decline from its peak. Initially, 24.7 billion of the 100 billion tokens—created last October—were unlocked following a governance vote, including 7.8 billion reserved for a new crypto treasury in partnership with ALT5 Sigma. Donald Trump Jr. defended WLFI as more than a memecoin, emphasising its governance role. Critics, led by Senator Elizabeth Warren, warn of conflicts of interest, noting Trump’s 15.75 billion-token stake valued at $3.6 billion. WLFI’s market cap stands near $6.4 billion, while the platform’s USD1 stablecoin holds $2.7 billion in reserves.
Bearish
The WLFI token’s 12% price decline on debut signals bearish sentiment among traders. Despite high-profile backing by Donald Trump and the token’s role in DeFi governance, the sharp drop from $0.33 to $0.24 suggests insufficient buying pressure. Historical parallels, such as the initial volatility of other politically linked tokens, show early hype can fade quickly when token utility remains unproven. Conflict of interest concerns, raised by Senator Warren, may deter institutional and retail investors, further weighing on market confidence. In the short term, WLFI is likely to face continued volatility and downward pressure unless trading volumes increase and real-world use cases emerge. Over the long term, regulatory scrutiny and the company’s ability to deliver on governance promises will be critical. For now, traders should approach WLFI with caution, monitoring support at $0.24 and resistance near the launch high before considering bullish positions.