Why did the price of WLFI fall?
World Liberty Financial (WLFI) dropped 1.18% over the last 24 hours to $0.20, extending its decline over the past week to 6.04%. Here’s a quick summary of the main reasons:
- Concerns Over Treasury Token Sale (Negative Impact)
- Questions About Stablecoin Transparency (Negative Impact)
- Technical Price Resistance Levels (Mixed Impact)
In-Depth Analysis
1. Concerns Over Treasury Token Sale (Negative Impact)
What happened: On October 4, WLFI announced it sold treasury tokens to Hut8, a company linked to former President Trump, at $0.25 per WLFI token. This price is 25% higher than WLFI’s current market price. The sale was described as a “locked reserve” deal, but it raised worries among the community about special treatment and the possibility of future token dilution.
Why it matters: Selling treasury tokens above the current market price can suggest weak demand for WLFI at today’s prices. Trading volume spiked 4% to $51.6 million on Binance, showing that many traders were selling, likely due to doubts about the deal. In the past, similar unclear treasury sales have hurt confidence in governance tokens like WLFI.
2. Questions About Stablecoin Transparency (Negative Impact)
What happened: NYDIG, a financial services firm, pointed out that the USD1 stablecoin—WLFI’s main product—has not released attestation reports since July 2025 (NYDIG). USD1 has a market value of $2.7 billion, making it the 7th-largest stablecoin, but 78% of its supply is traded on offshore exchanges.
Why it matters: Delays in audit reports raise concerns about the stablecoin’s reliability, which is crucial for WLFI’s overall ecosystem. Additionally, upcoming U.S. regulations (the GENIUS Act) will limit stablecoin issuance to regulated companies by 2027. These compliance uncertainties may be hurting WLFI’s perceived usefulness.
3. Technical Price Resistance Levels (Mixed Impact)
What happened: WLFI is facing strong resistance at three price points: $0.2023 (5-day moving average), $0.2038 (13-day moving average), and $0.2050 (8-day moving average). The Relative Strength Index (RSI) is at 44.46, indicating weak buying momentum. However, the $0.20 support level has held steady since late September.
Why it matters: WLFI’s repeated inability to rise above $0.2050 suggests bearish pressure. If the price falls below $0.20, it could test the September low of $0.1950. On the other hand, breaking above $0.2050 with strong trading volume might signal a short-term rebound.
Conclusion
WLFI’s recent price drop reflects concerns about governance risks related to the Hut8 deal, transparency issues with the USD1 stablecoin, and technical signs of weakening momentum. While the overall cryptocurrency market gained 1.45% during this time, WLFI’s association with Trump-linked entities hasn’t been enough to overcome these challenges.
Key point to watch: Will WLFI maintain its $0.20 support level, or will ongoing delays in USD1 audits lead to further selling pressure?
What could affect the price of WLFI?
WLFI’s price is caught between political excitement and real challenges.
- Tokenized Real-World Assets (RWA) & Debit Cards – New asset types and a planned crypto debit card could help adoption, but results are uncertain.
- Regulatory Concerns – Lack of transparency around the stablecoin USD1 may cause legal and compliance problems.
- Large Holder Pressure – Early investors and treasury sales could create price instability.
Deep Dive
1. Tokenized Commodities & Debit Cards (Mixed Impact)
Overview: WLFI is working on launching a crypto debit card, with a pilot expected between late 2025 and early 2026. They also plan to tokenize commodities like oil, gas, and real estate, using assets linked to former President Trump. Their stablecoin, USD1, which has a market value of about $2.7 billion, recently became available on the Aptos and Mantle blockchains, aiming to attract institutional investors interested in real-world assets.
What this means: Tokenizing real-world assets could bring more decentralized finance (DeFi) users and liquidity. However, USD1’s growth is uncertain because of delays in proving that the stablecoin is fully backed by reserves, which has raised doubts since July 2025. For WLFI to succeed, it needs to show real practical use beyond political associations.
2. Regulatory Heat & Stablecoin Compliance (Bearish Risk)
Overview: The U.S. GENIUS Act, coming into effect in 2027, may prevent BitGo Technologies—the company behind WLFI’s USD1 stablecoin—from offering it unless they become a regulated bank subsidiary. Additionally, Senators Warren and Merkley have raised concerns about potential conflicts of interest involving the Trump family’s business deals in Abu Dhabi.
What this means: These regulatory uncertainties could scare off institutional investors who are key to USD1’s success, which supports WLFI’s overall ecosystem. Missing compliance deadlines might lead to significant sell-offs and price drops.
3. Whale Unlocks & Treasury Sales (Bearish Risk)
Overview: Early investors were allowed to unlock 20% of their tokens at launch, and the Trump-linked treasury has sold tokens at premium prices, including a $0.25 per WLFI token deal with Hut8. Data shows that 64 wallets control over half (56.4%) of all WLFI tokens.
What this means: When a few holders control most of the supply, the price can swing wildly. For example, one large holder lost $1.63 million after selling WLFI tokens post-launch. A planned burn of 47 million tokens in September 2025 didn’t ease selling pressure, and technical indicators like the RSI-7 at 43.12 suggest weak price momentum.
Conclusion
WLFI’s short-term growth depends on successful partnerships involving real-world assets and the adoption of its crypto debit card. However, regulatory challenges and the influence of large token holders create ongoing risks. Keep an eye on updates about USD1’s reserve attestations and the treasury’s token unlock schedule in October 2025. The key question remains: Can WLFI evolve from a politically charged project into a practical, utility-focused platform?
What are people saying about WLFI?
The buzz around World Liberty Financial (WLFI) is a mix of skepticism and cautious hope. Here’s what’s trending:
- Justin Sun’s $75 million token freeze raises concerns about centralized control versus investor protection.
- Buyback proposals aim to reduce selling pressure, but it’s unclear if demand will pick up.
- Price swings after launch have tested investor confidence, with a 16% drop on debut and a battle to hold $0.20 support.
Deep Dive
1. Justin Sun’s $75M WLFI freeze seen as a negative sign
Crypto analyst @EtherWizz_ points out that Justin Sun offered a 20% annual yield on HTX, moved WLFI tokens to Binance to sell them, then bought back at a lower price. The team then froze 540 million unlocked tokens plus 2.4 billion locked tokens.
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What this means: This move raises short-term concerns. It suggests that a few large holders (whales) have significant control, which goes against the idea of decentralization. It also creates reputational risks for WLFI.
2. Vote to use fees for buybacks seen as positive
Another analyst, @MarcosBTCreal, highlights a community vote where 99.81% supported using 100% of fees to buy back and burn tokens across Ethereum, Binance Smart Chain, and Solana. This is not a one-time event but a plan for ongoing supply reduction.
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What this means: This is a positive sign for the long term if more people start using WLFI. Recent burns totaling about $1.4 million (Lookonchain) could reduce supply, but burning tokens alone won’t fix weak demand.
3. Price volatility after launch shows mixed signals
Crypto commentator @Ikcrypt notes that WLFI’s price jumped to $0.46 before dropping to $0.23. The market cap remains above $6 billion, but it’s unclear if this is a “rug pull” (a sudden drop due to fraud) or a phase where investors are accumulating tokens.
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What this means: The technical indicators are neutral. Resistance is around $0.2050, and the Relative Strength Index (RSI) is 44.46 (Yahoo Finance), suggesting neither strong buying nor selling pressure. However, daily trading volume of $185 million shows active speculation.
Conclusion
The overall view on WLFI is mixed. The project benefits from high-profile attention linked to Justin Sun but faces concerns about large holders controlling too much and the token’s economic model. Token burns and cross-chain features through Chainlink CCIP offer potential upside. Keep an eye on the $0.195 price support and a big token unlock scheduled for October worth $483 million. The upcoming governance votes will be key to seeing if WLFI can balance political branding with solid decentralized finance (DeFi) fundamentals.
What is the latest news about WLFI?
World Liberty Financial (WLFI) is making moves with its stablecoin USD1, but faces some challenges with transparency and market reactions. Here’s the latest update:
- USD1 Launches on Aptos (October 6, 2025) – USD1 becomes the first stablecoin on the Aptos blockchain through a partnership with Thala Labs.
- Missing USD1 Reserve Reports (October 5, 2025) – NYDIG raises concerns about missing transparency reports as USD1’s supply grows to $2.7 billion.
- Treasury Token Sale Causes Price Drop (October 4, 2025) – WLFI’s price falls 3% after a token sale to Hut8 at a premium sparks community doubts.
In-Depth Look
1. USD1 Launches on Aptos (October 6, 2025)
What happened: World Liberty Financial expanded its USD1 stablecoin to the Aptos blockchain, making it the first Move-based stablecoin on that network. This launch was announced at the TOKEN2049 conference with Donald Trump Jr. involved, and supported by Panora Exchange and Hyperion. USD1 aims to make cross-border payments and decentralized finance (DeFi) easier and faster.
Why it matters: This expansion could be good news for WLFI, as it opens up new opportunities for USD1 in the Aptos ecosystem, potentially attracting more users and developers. However, success depends on how much liquidity and developer support USD1 can gain on Aptos. (Cryptotimes)
2. Missing USD1 Reserve Reports (October 5, 2025)
What happened: NYDIG, a financial services firm, pointed out that USD1 hasn’t released its reserve attestations since July 2025. These reports show that the stablecoin is fully backed by reserves. Although BitGo Trust holds these reserves, the issuer has not explained why the reports are delayed.
Why it matters: This lack of transparency can hurt WLFI’s reputation, especially since other stablecoins like USDC and USDT regularly publish these reports. With new regulations coming in 2027 (the GENIUS Act), failure to provide clear attestations could force WLFI to make significant changes. (CoinDesk)
3. Treasury Token Sale Causes Price Drop (October 4, 2025)
What happened: WLFI’s treasury sold tokens to Hut8, a company backed by Donald Trump, at $0.25 per token—higher than the market price. This led to a 3% drop in WLFI’s price to $0.20. The community questioned whether this deal was fair, even though WLFI said it wouldn’t dilute existing holders.
Why it matters: The price drop shows some distrust in how WLFI manages its treasury. Technical analysis indicates bearish momentum unless the price can rise above $0.2050. (Yahoo Finance)
Conclusion
World Liberty Financial is growing its ecosystem with USD1’s launch on Aptos, but concerns about transparency and insider deals are affecting investor confidence. The big question is: Will USD1’s growth be enough to overcome governance and regulatory challenges before the 2027 deadline? Keep an eye on how well USD1 is adopted on Aptos and whether WLFI improves its transparency.
What is expected in the development of WLFI?
World Liberty Financial (WLFI) is making progress with these key developments:
- Debit Card Pilot (Q4 2025/Q1 2026) – Launching a debit card linked to their USD1 stablecoin, compatible with Apple Pay for everyday purchases.
- Tokenized Real-World Assets (2026) – Creating a platform to trade commodities like oil and timber directly on the blockchain.
- USD1 Expansion to Aptos (Date TBD) – Bringing their stablecoin to new blockchain networks to increase its usability.
In-Depth Look
1. Debit Card Pilot (Q4 2025/Q1 2026)
What’s happening:
WLFI plans to introduce a debit card connected to their USD1 stablecoin. This card will work with Apple Pay, making it easy to use digital currency for daily spending. Zak Folkman, WLFI’s co-founder, described the app as “Venmo meets Robinhood,” blending simple peer-to-peer payments with investment features (CoinSpeaker).
Why it matters:
This move is positive for WLFI because it helps connect cryptocurrency with traditional finance, which could lead to more people using USD1. However, challenges like government regulations and getting users to adopt the card could slow progress.
2. Tokenized Real-World Assets (2026)
What’s happening:
WLFI is building technology to turn physical commodities—such as oil, gas, and cotton—into digital tokens that can be traded on the blockchain. This aims to attract big investors, although the exact launch date is still unknown (Bitcoinist).
Why it matters:
This development has potential for long-term growth by opening new ways to generate revenue. Still, WLFI faces competition from established platforms like Ethereum, which already hosts $9.1 billion in tokenized assets. Additionally, unclear regulations around these digital assets add uncertainty.
3. USD1 Expansion to Aptos (Date TBD)
What’s happening:
Currently available on Ethereum, BNB Chain, and Tron, WLFI’s USD1 stablecoin will soon be available on the Aptos blockchain. This expansion aims to make USD1 more versatile across different blockchain networks (Bitcoinist).
Why it matters:
In the short term, this is a neutral development. Expanding to Aptos could improve liquidity and usability, but its success depends on how much the Aptos network grows.
Summary
World Liberty Financial is focusing on practical uses for its technology, like the debit card and tokenized assets, while also expanding its blockchain reach. However, timelines are still flexible, and the project faces unique challenges due to its political connections and centralized control. The big question remains: will wider adoption of WLFI’s products outweigh concerns about transparency and competition?
What updates are there in the WLFI code base?
WLFI’s recent software updates focus on managing token supply and growing its ecosystem.
- Fee Buyback & Burn Activation (September 16, 2025) – Ongoing removal of tokens on Ethereum, Binance Smart Chain (BSC), and Solana.
- Real-World Asset (RWA) Tokenization Integration (October 1, 2025) – Linking real-world assets with the USD1 stablecoin.
- Multi-Chain Liquidity Strategy (September 16, 2025) – Coordinated buybacks across three blockchains.
Deep Dive
1. Fee Buyback & Burn Activation (September 16, 2025)
Overview: WLFI introduced a new system, approved by its governance, that uses all fees collected from liquidity pools to buy back and permanently remove WLFI tokens from circulation. This process happens automatically across Ethereum, BNB Chain, and Solana blockchains. In the first round, over 7.89 million WLFI tokens (worth about $1.43 million) were burned, with another 3.06 million tokens pending removal on Solana.
What this means: This is positive for WLFI because it creates steady demand for the token while reducing the total supply, which can help increase its value over time. Long-term holders benefit from this scarcity, though short-term price swings may occur as the supply adjusts.
(Source)
2. Real-World Asset (RWA) Tokenization Integration (October 1, 2025)
Overview: The update allows WLFI to represent real-world assets—like government bonds or commodities—as digital tokens backed by the USD1 stablecoin. This is made possible through new smart contracts that verify assets and enable them to work across different blockchains. The goal is to attract institutional investors by bridging traditional finance with blockchain technology.
What this means: This feature doesn’t immediately impact WLFI’s value but could increase the stablecoin’s usefulness if widely adopted. Its success depends on meeting regulatory requirements and forming strong partnerships. Traders should watch for increases in tokenized asset activity on the blockchain.
(Source)
3. Multi-Chain Liquidity Strategy (September 16, 2025)
Overview: Technical improvements now allow WLFI to perform buybacks efficiently across Ethereum, BSC, and Solana. The system uses decentralized exchanges like Raydium on Solana to reduce transaction costs and minimize price impact during purchases.
What this means: This is good news for WLFI because supporting multiple blockchains makes it easier for investors to participate and helps avoid delays or high fees. However, having liquidity spread across different chains might make it harder to determine the token’s exact market price.
Conclusion
WLFI’s software updates focus on reducing token supply through buybacks and expanding its ecosystem by integrating real-world assets and supporting multiple blockchains. These changes strengthen the project’s foundation, but future price movements will depend on how well governance decisions are executed and how widely the USD1 stablecoin is adopted. An open question remains: how will WLFI maintain decentralization given the significant influence of the Trump family on its protocol decisions?