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Why did the price of WLFI fall?

World Liberty Financial (WLFI) dropped 17.74% in the last 24 hours, falling more than the overall crypto market, which declined by 4.19%. This decline is linked to ongoing issues with project governance, token releases, and concerns about centralized control.

  1. Justin Sun’s $500M Stake Frozen – Freezing a major investor’s tokens caused panic selling.
  2. Early Investor Token Unlocks – 20% of presale tokens became available to trade, increasing selling pressure.
  3. Buyback Efforts Mixed – Recent token burns didn’t fully counteract weak demand.

Deep Dive

1. Justin Sun’s Frozen Stake (Negative Impact)

What happened: On September 8, WLFI froze 540 million unlocked tokens (worth about $112 million) and 2.4 billion locked tokens (totaling around $500 million) owned by Justin Sun, founder of Tron. The WLFI team accused Sun of trying to manipulate the market by offering a 20% annual yield on the HTX exchange for locked WLFI tokens, then allegedly selling large amounts on Binance (source).

Why it matters: This freeze revealed risks in WLFI’s governance, which had been promoted as decentralized. While the freeze aimed to protect regular investors, it raised concerns about unpredictable control by the project team, causing many retail investors to sell.

2. Presale Token Unlocks (Negative Impact)

What happened: At launch, only 20% of tokens bought by early investors (at prices between $0.015 and $0.05) became tradable. Since WLFI was trading between $0.20 and $0.30 after launch, these investors saw returns of 4 to 20 times their initial investment, encouraging them to sell.

Why it matters: The circulating supply jumped to 24.6 billion tokens, which is 25% of the total supply, putting pressure on buyers. Data from the blockchain shows large holders (whales) closing leveraged positions and losing over $1.6 million after the unlock (source).

3. Buyback Efforts (Mixed Results)

What happened: WLFI burned 47 million tokens (about 0.19% of total supply) on September 2 to try to support the price. However, this amount was small compared to the daily trading volume of roughly 1.2 billion tokens on September 21–22.

Why it matters: The buyback program depends on fees generated by the USD1 stablecoin. Since USD1’s market cap is $2.6 billion—much smaller than USDT’s $150 billion—the fees collected are limited, making it hard to sustain effective buybacks.

Conclusion

WLFI’s price drop highlights tension between its political branding and the crypto community’s expectations for decentralization. While the association with Trump initially attracted attention, the freezing of Justin Sun’s tokens and large early investor sell-offs have shaken confidence.

What to watch: Will WLFI’s plan for 100% fee-funded buybacks (pending a governance vote) help stabilize prices? Or will increased regulatory scrutiny of centralized control make things more difficult?


What could affect the price of WLFI?

The price of World Liberty Financial (WLFI) depends heavily on political connections, token buybacks, and regulatory oversight.

  1. Buyback Momentum – Approved token burns could reduce supply and support prices.
  2. Political Risks – Links to the Trump family bring potential volatility due to ethics investigations.
  3. Whale Manipulation – Blacklisted wallets suggest the market is vulnerable to large holders’ actions.

Deep Dive

1. Buyback Program Impact (Mixed)

Overview: WLFI’s governance-approved buyback program started on September 19. It uses 100% of liquidity fees to buy back and burn tokens, aiming to reduce the total supply. This plan was supported by 1.3 billion votes. However, only about 5% of WLFI’s total 100 billion tokens are currently in circulation.
What this means: The buyback could support prices in the short term if token burns happen faster than new tokens are unlocked. But the program’s success depends on steady trading activity—currently, the 24-hour trading volume is moderate at 0.26 times the circulating supply. Similar projects, like Jupiter, saw price increases of 15–30% after starting buybacks, but long-term effects are still uncertain (CoinDesk).

2. Political Exposure & Regulatory Risks (Bearish)

Overview: WLFI’s connection to the Trump family—Eric Trump is on the board of ALT5 Sigma—has attracted regulatory attention. Steve Witkoff, a White House envoy, still holds WLFI tokens despite ethics rules, according to a September 18 report. Additionally, the SEC is reviewing stablecoin regulations, which could impact WLFI’s USD1 stablecoin used in a $2 billion Abu Dhabi-Binance deal.
What this means: Regulatory scrutiny of politically connected crypto projects could lead to sell-offs. For example, Justin Sun’s $75 million WLFI stake was frozen on September 8, causing a 40% price drop in one day. With U.S. elections approaching, crypto regulations may change significantly after November, adding uncertainty (Weex).

3. Market Manipulation & Sentiment (Bearish)

Overview: Blockchain data shows 272 wallets have been blacklisted since September 1, including Justin Sun’s 540 million WLFI tokens. Analysts suggest that large holders (“whales”) are dumping tokens across exchanges and shorting WLFI, contributing to a 17.6% weekly price decline. The Fear & Greed Index stands at 47/100, indicating neutral market sentiment, but altcoin dominance is down 10% for the week.
What this means: Actions like freezing tokens challenge the idea of decentralization and may discourage institutional investors. Retail traders might shift to less volatile assets if Bitcoin’s dominance (up 57.77%) continues to rise, which could further reduce WLFI’s liquidity (XT Blog).

Conclusion

WLFI’s future depends on balancing optimism around its tokenomics with the risks from political ties and market volatility. The buyback program offers some positive momentum, but regulatory crackdowns and large-holder manipulation could outweigh these benefits. Keep an eye on the adoption of the USD1 stablecoin and the results of upcoming unlock votes—failure to control supply inflation or resolve ethics issues could accelerate price declines.
Will WLFI’s political connections shift from being a risk to becoming a compliance strength?


What are people saying about WLFI?

The World Liberty Financial (WLFI) community is currently divided, balancing political excitement with challenges after the token launch. Here’s the latest:

  1. Justin Sun’s frozen tokens raise concerns about market manipulation
  2. Connections to the Trump family spark debates over control and centralization
  3. Burning 47 million tokens hasn’t stopped the price from falling
  4. A plan for ongoing token buybacks has overwhelming community support (99.8%)

Deep Dive

1. Justin Sun’s WLFI Token Drama Signals Trouble

Twitter user @EtherWizz_ shared that Justin Sun moved his WLFI tokens to Binance to sell them, then bought back at a lower price. In response, the WLFI team froze his $75 million token allocation.
See original post
What this means: This situation is seen as negative for WLFI because it suggests possible market manipulation and shakes trust in big token holders. The freeze also highlights disagreements between the project team and investors about how the token should be managed.

2. Trump Family Ties Bring Mixed Reactions

According to @CryptoZeybek, WLFI’s connection to the Trump family has drawn attention but also criticism. Eric Trump reportedly controls the treasury governance, which conflicts with claims that WLFI is decentralized.
See original post
What this means: The political branding helps WLFI get noticed, but it raises concerns about centralized control and potential regulatory issues, especially since the Trump family owns about 60% of the tokens.

3. Large Investor Losses Weigh on Confidence

User @0xc06 reported that a major investor (a “whale”) lost $1.63 million on WLFI after the launch. Despite burning 47 million tokens, the price still dropped over 40%.
See original post
What this means: This is a bearish sign, showing that big investors are selling off their holdings, which weakens confidence. The token burn only reduced the circulating supply by about 0.19%, which wasn’t enough to support the price.

4. Community Strongly Supports Ongoing Buybacks

Twitter user @MarcosBTCreal shared that 99.81% of WLFI holders support a proposal for perpetual buybacks, which would continuously reduce the token supply across different blockchains.
See original post
What this means: This is a positive sign. If the buyback plan is implemented, it could increase scarcity and potentially boost the token’s value. However, the plan’s success depends on keeping demand high enough to balance selling pressure.

Conclusion

The outlook for WLFI is mixed. The political connections bring attention but also raise concerns about control and price volatility caused by large holders. The upcoming community vote on perpetual buybacks—aiming to use 100% of protocol fees for token repurchases—will be a key test. Keep an eye on the final vote results and any token burns that happen afterward to see if WLFI can overcome its current challenges.


What is the latest news about WLFI?

World Liberty Financial (WLFI) is navigating political challenges and market ups and downs while using tokenomics strategies to keep its price stable. Here are the latest updates:

  1. Ethics Controversy (September 18, 2025) – A White House envoy still holds WLFI tokens despite concerns about conflicts of interest.
  2. Buyback Strategy (September 17, 2025) – WLFI is using all liquidity fees to buy back and burn tokens.
  3. Justin Sun Freeze (September 8, 2025) – $100 million worth of tokens were frozen after launch, sparking debates about how decentralized WLFI really is.

Deep Dive

1. Ethics Controversy (September 18, 2025)

Overview:
Steve Witkoff, a special envoy for the White House, kept WLFI tokens connected to Trump family projects even though federal ethics rules require officials to sell such holdings. He took over nine months to comply. This happened while WLFI was involved in a $2 billion deal between Abu Dhabi and Binance using its USD1 stablecoin. The Trump family’s crypto assets now total over $1.3 billion, rivaling traditional holdings like Mar-a-Lago.

What this means:
This is a negative sign for WLFI because ongoing political issues could scare off big investors and attract government scrutiny. Still, WLFI’s role in major deals shows it remains important in the market. (WEEX)

2. Buyback Strategy (September 17, 2025)

Overview:
WLFI started a buyback program approved by its governance, using 100% of liquidity fees to burn tokens. This follows a previous burn of 47 million tokens on September 2 aimed at reducing price swings after listing.

What this means:
This is somewhat positive for WLFI. Burning tokens reduces supply, which can help support prices, but steady demand is needed to keep prices stable. This buyback fits into a larger trend of crypto projects doing similar moves in 2025, though some worry that new token releases might outpace these burns. (Millionero Magazine)

3. Justin Sun Freeze (September 8, 2025)

Overview:
Justin Sun, founder of TRON, accused WLFI of freezing $100 million of his tokens after the price dropped 40% following launch. WLFI said this was to reduce risk, but critics say it shows WLFI’s governance is too centralized.

What this means:
This is a short-term negative because freezing tokens hurts trust in WLFI’s claim to be decentralized. However, WLFI’s trading volume jumped to $1.33 billion in 24 hours after the incident, showing that traders are still interested. (WEEX)

Conclusion

WLFI’s future depends on managing political connections while proving it can deliver on decentralization and smart tokenomics. Buybacks and partnerships show active management, but controversies around governance and big token holders could push investors away. The key question: Can WLFI’s USD1 stablecoin gain wider use despite its political challenges?


What is expected in the development of WLFI?

World Liberty Financial (WLFI) is gearing up for key developments aimed at growing its ecosystem and improving governance:

  1. Buyback-and-Burn Plan (September 19, 2025) – A community-approved strategy to reduce the number of tokens in circulation.
  2. Mobile App Launch (2025) – Making decentralized finance (DeFi) easier to use for everyday people.
  3. USD1 Stablecoin Expansion (2025) – Rolling out the USD1 stablecoin on multiple blockchains, including Solana.

In-Depth Look

1. Buyback-and-Burn Plan (September 19, 2025)

What’s happening: A vote ending on September 19, 2025, approved a plan where all protocol fees (100%) will be used to buy WLFI tokens from the market and permanently remove them from circulation (source). This is designed to make the remaining tokens more scarce.

Why it matters:

2. Mobile App Launch (2025)

What’s happening: Co-founder Zak Folkman announced a new, easy-to-use mobile app that will offer a familiar experience similar to traditional apps (source). The app will allow users to transact with the USD1 stablecoin, stake tokens, and earn rewards through DeFi.

Why it matters:

3. USD1 Stablecoin Expansion (2025)

What’s happening: WLFI plans to launch the USD1 stablecoin on the Solana blockchain, adding to its existing presence on Ethereum and BNB Chain (source). USD1 is backed by real reserves and audited by Chainlink, aiming to compete with popular stablecoins like USDC and USDT.

Why it matters:

Summary

World Liberty Financial’s upcoming plans focus on improving token value through buybacks, making DeFi more user-friendly with a mobile app, and expanding the USD1 stablecoin to new blockchains. These moves aim to build long-term usefulness rather than just short-term trading hype. However, the project faces challenges from centralized control linked to the Trump family and regulatory uncertainties. The big question remains: Can WLFI’s message of “American values” attract a wider audience beyond its current political supporters as it grows?


What updates are there in the WLFI code base?

World Liberty Financial (WLFI) has upgraded its technology to improve security and make it easier to use across different blockchain networks.

  1. Cross-Chain Integration (September 1, 2025) – WLFI now supports safe transfers between Ethereum, Solana, and BNB Chain using Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
  2. Mobile App Development (June 30, 2025) – A new app is being built to offer a simple, familiar experience for accessing decentralized finance (DeFi).
  3. Token Transferability (July 4, 2025) – WLFI tokens can now be traded after a governance vote approved the change.

Deep Dive

1. Cross-Chain Integration (September 1, 2025)

Overview: WLFI integrated Chainlink’s CCIP, which allows users to move tokens smoothly and securely between Ethereum, Solana, and BNB Chain. This uses carefully reviewed smart contracts to ensure safety.

What this means: This is a positive step for WLFI because it makes the token more useful and accessible. Users can now easily move their assets across popular blockchain networks, which could help WLFI grow in the expanding world of multi-chain DeFi. (Source)

2. Mobile App Development (June 30, 2025)

Overview: WLFI’s co-founder Zak Folkman announced they are creating a mobile app that combines the advanced features of Web3 (blockchain-based apps) with the easy-to-use design of traditional apps.

What this means: This is a neutral update for WLFI right now because the app is still in development and there are risks involved. However, if successful, it could bring in users who are new to cryptocurrency and DeFi, making it easier to stake tokens or use stablecoins like USD1. (Source)

3. Token Transferability (July 4, 2025)

Overview: WLFI’s community voted overwhelmingly (99.94%) to allow WLFI tokens to be traded freely. This required updates to the smart contracts that control the tokens.

What this means: This is good news for WLFI because it improves liquidity (how easily tokens can be bought or sold) and helps establish a market price. However, since a large portion of tokens (15.75%) is held by the Trump family, this could lead to price swings. (Source)

Conclusion

WLFI’s recent updates focus on making the token easier to use across different blockchains, more accessible to everyday users, and more liquid in the market. These improvements are important for the project’s long-term growth. The success of the mobile app and how users adopt these changes will be key to WLFI’s future, especially as it aims to connect traditional finance with decentralized finance.