TL;DR
World Liberty Financial’s WLFI token has suffered a dramatic reversal just days after its much-publicized launch, underscoring the volatility of politically linked cryptocurrencies. Initially propelled by strong demand and high-profile backing, the token’s rapid decline has rattled investors and raised questions about its long-term viability.
Launched on September 1, WLFI quickly surged to an all-time high of $0.46, fueled by intense market interest tied to its Trump family association. However, the rally proved fleeting. In just 24 hours, the price dropped to $0.23, and on Thursday, it briefly reached $0.1794 before settling at around $0.16, dropping more than 23%.
WLFI’s market capitalization now hovers around $4.5 billion, a steep drop from its early peak. The coin has dropped 60% from its peak at launch and has lost almost 20% just in the last day. Analysts link the sell-off to intense activity from large investors, the release of unlocked tokens, and ongoing claims of corruption related to the project’s launch. These factors have combined to erode confidence and accelerate selling pressure.
In an attempt to stem the decline, World Liberty Financial announced the destruction of 47 million WLFI, representing about 0.19% of the circulating supply. On-chain data verifies the burn, yet this action has barely affected the price movement. Instead of sparking a rebound, the token continued to slide, highlighting the depth of bearish sentiment in the market.
WLFI’s trajectory serves as a cautionary tale for politically branded cryptocurrencies operating in speculative environments. While early hype and brand recognition can drive rapid inflows, they also magnify downside risks when sentiment turns. Without sustained buying support, even high-profile projects may struggle to recover from steep losses, and token burns alone may not be enough to reverse negative momentum.
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