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Could TRUMP's Rollercoaster Ride Repeat Itself?
Analysts from investment bank Compass Point warn that the upcoming World Liberty Financial token (WLFI) could pose significant risks to retail investors. "This could make the token's book value appear very high, as over 20% of the supply is held by the family of U.S. President Trump. Although these tokens are non-tradeable, the trading price of WLFI will also be estimated based on these holdings, which could become another catalyst for retail traders to suffer heavy losses."
The rollercoaster ride of the TRUMP token might serve as a cautionary tale. Officially launched on January 17 of this year, TRUMP was met with market frenzy. Within just 48 hours, TRUMP强势 broke into the top 20 cryptocurrencies, with its total market cap once soaring to $15 billion. This was just three days before Trump's inauguration as U.S. President on January 20.
However, like most Meme coins, even the TRUMP token issued by the U.S. President couldn't escape the fate of wild price swings. Since January this year, the TRUMP token has struggled to recover, leaving most retail investors holding the bag (locked in at high prices).
Given this, bolstered by the presidential halo, the launch of WLFI might similarly create waves in the crypto market. In a survey of a Discord group for holders of at least 1 million WLFI tokens, many small holders indicated they would choose to sell if the price reaches $0.47. The group's operator, Vincent Deriu, revealed that large holders have target prices above $1. Many plan to sell part of their tokens from the 20% allocation. Even moderate selling by major shareholders could overwhelm liquidity in the early stages of trading. In the long run, mere hype and slogan-chanting cannot provide sustainable upside for WLFI's price.
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Is Political Power Rewriting Financial Markets?
In June this year, Trump disclosed that he had profited $57.4 million from WLFI. In his 2025 public financial disclosure report filed with the Office of Government Ethics, Trump reported holding 15.75 billion WLFI tokens.
Public affairs lawyer and CEO of AR Media Consulting, Andrew Rossow, pointed out: "The debut of WLFI tests whether political power can rewrite (not just reinterpret) U.S. crypto law in real-time."
He believes: The fact that WLFI avoided being formally classified as a security by the SEC "despite concentrated ownership and political connections" sets a precedent that could "hollow out long-standing investor protection standards." "It suggests that if your capital, user base, and brand are strong enough, and your politics are friendly, you might just get a pass."
"By backing down, regulators risk normalizing conflicts of interest and damaging public trust." This might prompt some institutions to look beyond strict compliance checklists and place greater emphasis on "narrative warfare" and preemptive strategies shaped by investor experience.
But WLFI "is not confined to a simple financial instrument; it is also the first experiment combining WLFI's political capital with digital infrastructure." This move could "set the standard" for innovative approaches in the crypto industry. "Everything from the dual-token architecture to the massive scale for institutional investors suggests it may be attempting to corner the market on 'compliance-friendly DeFi,' but it raises questions from a constitutional and ethical standpoint."
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Is WLFI Making Grandiose Promises (Painting a Big Pie)?
WLFI's product architecture is based on the governance token WLFI and the stablecoin USD1, aiming to bridge traditional finance with DeFi. Its core consists of the institutional-grade stablecoin USD1 and the community-driven governance token WLFI. The product architecture features multi-chain deployment, compliance management (including KYC and third-party audits), and a community governance mechanism, providing transparent and secure digital asset services through the USD1 stablecoin backed by dollar reserves.
However, since WLFI was first introduced last September, it has not achieved any notable results. On March 25, WLFI announced the launch of its USD-pegged stablecoin, USD1. On September 1, USD1 announced that WLFI is 1:1 backed by reserve assets and integrated with Raydium, BONK.fun, and Kamino on its first day of launch on Solana. Over the past year, WLFI's product development has been slow, relying mostly on hype for attention. The "decentralized financial platform" has only enabled token transfer functions; core DeFi scenarios like borrowing, lending, and liquidity pool creation have not yet been launched.