On September 1st, the governance token WLFI of the World Liberty Financial (WLFI) project, publicly supported by the Trump family, officially began trading on major exchanges such as Binance and Coinbase. This event has attracted the attention of the global crypto market. As of the time of writing, WLFI is quoted at $0.2901 on Binance, with a fully diluted valuation (FDV) of approximately $29 billion, having reached a high of $0.4780!
Below is an in-depth analysis of the cryptocurrency project backed by the Trump family:
Project Background and Core Structure
WLFI was established in September 2024 as a decentralized finance (DeFi) project. Its core objectives are to promote stablecoin adoption and strengthen the US dollar's position. It raised $550 million through two rounds of sales at prices of $0.015 and $0.05.
Guided by real estate magnate Steve Witkoff and his son Zach, the project was co-founded by active figures in the crypto space, Chase Herro and Zak Folkman. The core goal is to promote stablecoin adoption and strengthen the US dollar's position.
The Trump family plays a central role in the project. Trump himself is listed as the "Chief Crypto Advocate," while his sons Eric Trump and Donald Trump Jr. serve as "Web3 Ambassadors." The Trump family holds 22.5 billion WLFI tokens through the entity DT Marks DEFI LLC, with Trump personally holding 15.75 billion of those.
WLFI Core Mechanism Design
The core of the WLFI project lies in its "trinity" design structure:
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Solid Financial Foundation: The stablecoin within the WLFI ecosystem, USD1, is 100% backed by high-credit real-world assets (RWA), with approximately 85% being government money market funds. The reserves are managed by the US-regulated custodian BitGo, with WLFI acting solely as the brand.
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Unique Market Game Theory Mechanism: NASDAQ-listed company ALT5 Sigma has committed to acquiring up to $750 million worth of WLFI tokens, with this purchase having "no specific time or price limits." This is seen as the project's "strategic war chest," usable for price stabilization during market volatility.
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Macro Narrative Value: WLFI is positioned as a model to demonstrate "American compliant innovation" to global regulators. This identity, tied to a regulatory-aligned direction, grants it a "regulatory certainty" premium.
Token Release Strategy and Investor Structure Expectations
The activation and distribution of WLFI tokens follow a strictly controlled two-step process. Early investors can sell up to 20% of their token holdings, with the remainder still locked. This liquidity restriction is seen as a "conventional float management strategy" aimed at stabilizing the price by controlling early selling pressure.
Only 20% of the sold tokens were unlocked and transferable at trading launch, representing approximately 5% of the total supply. Tokens held by the founding team, advisors, and partners will remain locked.
The WLFI investor list combines capital and industry influence. Besides the Trump family entity, Tron founder Justin Sun is one of the project's largest independent investors.
Web3 native fund Aqua1 Fund announced a strategic purchase of $100 million worth of WLFI, becoming one of the largest external token holder addresses, replacing Justin Sun. Abu Dhabi-based market maker DWF Labs also spent $25 million to purchase the token.
The launch of WLFI token trading has already caused ripple effects in the DeFi market. As the token lists, this project blending political influence and encryption technology awaits the market testing its true value with real money.
Whether viewed as an innovation or a "state-sponsored Ponzi scheme," the WLFI project, with its unique structural design—extremely thin circulating supply, massive treasury capital, and a mechanism converting real-world yields into sustained buying pressure for the token itself—has become a force that cannot be ignored in the crypto market.
