World Liberty Financial Burns WLFI Tokens to Stem Price Slide After Launch
World Liberty Financial (WLFI), a cryptocurrency project supported by the Trump family, is under a lot of pressure as its token continues to
Quick overview
- World Liberty Financial (WLFI) is facing significant pressure as its token price drops over 11% to around $0.21, prompting an aggressive token burn strategy to remove 47 million tokens from circulation.
- The project aims to stabilize its price by increasing the relative ownership percentage of long-term holders while addressing ongoing selling pressure from early investors.
- Market experts express concerns about the viability of celebrity-backed tokens, citing past failures and emphasizing the need for institutional adoption over speculative trading.
- WLFI's future price trajectory will depend on the effectiveness of its token burn program, the overall altcoin market conditions, and its ability to maintain political relevance.
World Liberty Financial (WLFI), a cryptocurrency project supported by the Trump family, is under a lot of pressure as its token continues to fall from its launch highs. It is currently trading above $0.21 after falling more than 11% in the last 24 hours. The project has put in place an aggressive token burn strategy in response to the ongoing selloff. This will permanently take 47 million WLFI tokens out of circulation.
WLFI Token Burn Strategy Aims to Stem Price Hemorrhaging
Blockchain analytics company Lookonchain was the first to find out about the emergency burn. It is the project’s instant response to the selling pressure that has been going on since WLFI started trading publicly on Monday. The burned tokens are worth about $10.5 million at current rates and make up 0.19% of the 24.66 billion tokens that are currently in circulation.
Onchain data shows that the tokens were transmitted to a burn wallet on September 2nd, which cut the overall quantity of WLFI tokens from 100 billion to 99.95 billion. This action comes after a formal proposal was made on Tuesday for a full repurchase and burn program using protocol-owned liquidity fees.
“The token burn will increase the relative ownership percentage of committed long-term holders while removing from circulation tokens held by participants not committed to WLFI’s long-term growth,” the team said in their proposal.
WLFI/USD Technical Analysis Reveals Critical Support Test
From a technical point of view, WLFI is going through the same things that happen to new cryptocurrencies when they launch. The coin reached an intraday high of $0.331 on Monday, but it has since dropped more than 31%, forming a worrying downtrend pattern.
Right now, the price is around $0.21, which is a key support level. If the price goes below this level, it could cause more selling pressure, which could push the token down to the $0.18-$0.20 range. On the other hand, if the $0.21 support holds up and the token burn mechanics work, there might be a relief rally up to $0.26-$0.28.
The amount of trades is still high, which shows that both buyers and sellers are still interested. But because there is so much selling pressure, it looks like early investors and market makers are aggressively selling their shares to retail consumers who are drawn to the Trump name.
Market Sentiment and Celebrity Token Concerns
After the Official Trump (TRUMP) meme currency lost more than 90% of its value after the presidential inauguration, industry experts are questioning the utility of celebrity-backed tokens. Kevin Rusher, the founder of RAAC, says that “such blatantly speculative trading continues to damage trust in crypto.” He stresses that institutional adoption is more important than celebrity endorsements.
The WLFI launch also produced a lot of traffic on the network, which made Ethereum gas fees go through the roof. Mangirdas Ptašinskas from Galxe said that fees for $200 transfers went up to $50, which shows that the infrastructure isn’t ready for widespread use.
Supply Overhang Creates Long-Term Headwinds
The way WLFI’s tokenomics work is a big worry for the price of its tokens. There are only 24.66 billion tokens available right now, out of a total of 100 billion. Future token releases could put a lot of downward pressure on prices. This situation is similar to the Pi Network case study, when ongoing unlocks caused prices to drop 90% from their original highs.
The project’s USD1 stablecoin has grown a lot in the past month, with supply rising 24% to $2.7 billion and trading volume rising 784% to $13.3 billion. Even if the operation went well, it seems that WLFI token holders are unsure if the stablecoin’s revenue, possibly more than $108 million a year, will assist them or mostly the Trump family’s interests.
WLFI Price Predictions and Market Outlook
Short-term technical indications show that WLFI could see a short-term bounce as it becomes oversold. The project’s capacity to show usefulness beyond speculative trading will mostly determine the larger trajectory.
If the market stays well and the project successfully implements its DeFi integrations, conservative estimates say that WLFI’s goal price at the end of 2025 will be between $0.20 and $0.60. If politics stays important and token burn schemes work, prices might reach $1.20 by 2026 in more positive scenarios.
The five-year projection shows a lot of different possibilities, with prices ranging from $1.80 to $3.00 by 2030. This will depend mostly on changes in regulations and the project’s growth beyond its current meme-token status.
Key Factors for Success
WLFI’s success will depend on a few important things: how well the token burn program works to ease supply pressure, how well the project can create long-term revenue streams for token holders, how the altcoin market as a whole is doing, and how well it can stay politically relevant after the current election cycle.
People who are thinking about investing in WLFI should be careful because celebrity-backed tokens are quite risky and can change a lot. The token’s present technical setup points to a make-or-break moment near the $0.21 support level. The next few trading sessions will probably decide if WLFI can consolidate or keep going down toward the $0.15-$0.18 region.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save