Why did the price of WLFI go up?

World Liberty Financial (WLFI) increased by 5.45% in the last 24 hours, outperforming the overall crypto market, which rose by 0.38%. The main reasons behind this rise are:

1. Impact of CZ’s Pardon – Reduced regulatory concerns for crypto projects linked to Trump (Crypto.news).
2. Technical Recovery – Price moved above important averages with positive momentum signals.
3. Supply Changes – Freezing of 540 million WLFI tokens owned by Justin Sun lowered selling pressure (EtherWizz).

Deep Dive

1. Regulatory Sentiment Shift (Positive Effect)

Summary: WLFI’s price jumped after former Binance CEO Changpeng Zhao (CZ) was pardoned by Trump, which many see as a sign of a friendlier approach to crypto regulation. This eased worries about strict enforcement on crypto projects connected to political figures.

Why it matters: Since Trump’s family trusts control about 60% of WLFI, the project could benefit from this political support. The pardon has led to speculation that WLFI’s USD1 stablecoin and its decentralized finance (DeFi) platform might face fewer regulatory hurdles.

What to watch: How the SEC responds to Trump’s crypto policies and whether USD1 complies with the new GENIUS Act.

2. Technical Breakout (Mixed Signals)

Summary: WLFI’s price moved above its 7-day simple moving average ($0.1326) and 30-day exponential moving average ($0.1581). The MACD indicator, which measures momentum, turned positive for the first time since September 2025.

Why it matters: This suggests short-term buying interest, but the Relative Strength Index (RSI) at 47.84 shows the market is neither overbought nor oversold. The price is near a key retracement level ($0.1415), and a close above $0.15 could push it toward $0.172.

What to watch: Daily trading volume staying above $150 million (currently $148.7 million) to confirm the strength of this upward move.

3. Supply Shock Mechanics (Positive Effect)

Summary: WLFI froze 540 million tokens (about 2.2% of the circulating supply) owned by Justin Sun after accusations of market manipulation through the HTX exchange.

Why it matters: This freeze removed roughly $76 million worth of tokens from the market temporarily, reducing selling pressure. Along with a token burn of 47 million in September, the circulating supply only grew 0.8% month-over-month, compared to 3.2% in August.

What to watch: An upcoming community vote on October 27 about increasing buybacks using 100% of protocol fees.

Conclusion

WLFI’s recent price increase is mainly driven by political developments and supply restrictions rather than strong business growth. Technical indicators suggest the price could reach between $0.15 and $0.16, but the high valuation—58 times sales compared to the industry average of 12 times—indicates potential risks.

Key point to monitor: Whether the Trump administration will propose integrating WLFI/USD1 for government payments in future policy plans.

What could affect the price of WLFI?

WLFI’s price is caught between positive momentum linked to Trump and risks from token governance.

1. Governance Unlocks (Bearish) – 75% of WLFI tokens are still locked, which could lead to selling pressure when they become available.
2. USD1 Stablecoin Adoption (Bullish) – Growth in the Trump-backed USD1 stablecoin could increase WLFI’s usefulness.
3. Regulatory Scrutiny (Mixed) – Political connections bring both supportive policies and potential investigations.

Deep Dive

1. Token Unlocks & Whale Activity (Bearish Impact)

Overview:
Out of WLFI’s total supply of 100 billion tokens, 75% remain locked. Early investors, including those linked to Trump, hold 22.5 billion tokens. A second phase of unlocking could release over 5 billion tokens soon, according to KuCoin. Additionally, the recent blacklisting of 540 million tokens owned by Justin Sun (CryptoNews) shows how token supply can be volatile.

What this means:
When large amounts of tokens become available, it can overwhelm demand and push prices down. WLFI has already dropped 38% from its September 2025 peak ($0.33 to $0.142). Similar situations, like the TRUMP memecoin’s crash after token unlocks, suggest investors should be cautious.

2. USD1 Stablecoin Ecosystem Growth (Bullish Impact)

Overview:
WLFI’s related stablecoin, USD1, reached a $2.7 billion market cap in September 2025. This growth was boosted by a $2 billion investment from Binance in Abu Dhabi through USD1 (CCN). Plans to introduce tokenized commodities such as oil and timber, along with Visa debit cards, aim to increase real-world use.

What this means:
More adoption of USD1 benefits WLFI through fees and token buybacks. For comparison, Tether’s stablecoin dominates with a $269 billion market cap and over $40 billion in daily trading volume. If USD1 gains similar traction, it could significantly raise WLFI’s current $3.5 billion market cap.

3. Political & Regulatory Crosswinds (Mixed Impact)

Overview:
Trump’s pro-crypto stance, including pardoning Binance’s CEO CZ, has helped market sentiment. However, WLFI’s 60% ownership by the Trump family draws regulatory attention. The SEC is investigating co-founder Steve Witkoff’s business deals in the UAE (X post).

What this means:
Positive regulatory developments, like stablecoin-friendly laws, could speed up adoption. On the other hand, investigations into token distribution or conflicts of interest might cause sell-offs. WLFI limits voting power to 5% per wallet to reduce centralization risks, but it doesn’t eliminate them entirely.

Conclusion

WLFI’s future depends on balancing the growth of USD1 against the risks from token unlocks and political scrutiny. Keep an eye on the USD1/TVL ratio—currently $2.7 billion in stablecoins versus $630 million in DeFi total value locked—as growth here would be a positive sign. The key question remains: Can WLFI evolve from a Trump-branded novelty into a sustainable decentralized finance (DeFi) platform before token unlocks create too much selling pressure?

What are people saying about WLFI?

The conversation around World Liberty Financial (WLFI) is buzzing with mixed feelings—some are hopeful about token burns, while others are concerned about big investors causing trouble. Here’s what’s trending:

1. Buyback plan raises hopes for fewer tokens in circulation
2. Justin Sun’s frozen tokens raise worries about market manipulation
3. Price swings after launch test investor confidence

In-Depth Look

1. Buyback Vote Nears Full Approval — Positive Signal

MarcosBTCreal, a popular crypto commentator, shared:
“99.81% support a 100% fee buyback and burn… this could greatly increase WLFI’s price as the ecosystem expands.”
See original post
What this means: This is good news for WLFI. A buyback and burn plan means the project will regularly buy back tokens and remove them from circulation, which can make the remaining tokens more valuable. But for this to work well, more people need to want WLFI than those selling it, especially when new tokens become available.

2. Justin Sun’s $75M Stake Frozen — Negative Signal

Crypto analyst rayray1 reported:
“Justin Sun moved WLFI tokens to Binance, sold them, then bought back at a lower price. The WLFI team froze all his tokens.”
See original post
What this means: This is a warning sign. When large holders like Justin Sun have their tokens frozen, it shows there’s a risk of central control over the token supply. This can scare investors because it might cause sudden drops in liquidity and trust in how the project is managed.

3. Post-Launch Price Swings Raise Concerns — Mixed Signals

Crypto commentator Ikcrypt noted:
“Price jumped to $0.46 then dropped to $0.23… but with a market cap over $6 billion, WLFI remains a major player.”
See original post
What this means: The price ups and downs show strong interest but also uncertainty. Some investors worry if the demand will last. Technical analysis points to a key support level at $0.16, meaning if the price falls below this, it could signal more trouble (source: TokenPost).

Summary

Opinions on WLFI are mixed. On one hand, the tokenomics like buybacks and strong branding suggest potential growth. On the other hand, risks from large holders and price volatility after launch create caution. The key factor to watch is how well the buyback and burn plan works—if it successfully reduces the number of tokens available, it could offset the impact of a large token unlock scheduled for October, which is valued at $483 million (Yahoo Finance).

What is the latest news about WLFI?

World Liberty Financial (WLFI) is making progress with supportive policies and growing use of its USD1 stablecoin, but it still faces concerns due to political connections.
Latest updates as of October 26, 2025:

1. USD1 Stablecoin Gets Backing from UAE (October 25, 2025) – A $2 billion investment fund in the UAE used USD1 to buy a stake in Binance, helping boost the stablecoin’s adoption.
2. WLFI Token Jumps After CZ Pardon (October 24, 2025) – The token’s price rose 12% after former Binance CEO Changpeng Zhao was pardoned, easing regulatory worries.
3. New Debit Card with Apple Pay Support (September 23, 2025) – WLFI announced a USD1-linked debit card and app, similar to Venmo and Robinhood, now expected to launch late 2025 due to technical delays.

In-Depth Look

1. USD1 Stablecoin Gains UAE Backing (October 25, 2025)

What happened:
A major investment fund in the United Arab Emirates used WLFI’s USD1 stablecoin to purchase a $2 billion stake in Binance, according to Crypto.News. This follows USD1’s earlier integration with payment networks Visa and Mastercard. However, high transaction fees on Ethereum—sometimes up to $1,000—still make small transfers expensive.

Why it matters:
This is a positive sign for WLFI because institutional use of USD1 helps it compete with other popular stablecoins like USDT and USDC. Still, the high and unpredictable fees on Ethereum might push users to use Solana-based transactions, where USD1 is also available and cheaper.

2. CZ Pardon Sparks WLFI Rally (October 24, 2025)

What happened:
WLFI’s token price jumped 12% after former Binance CEO Changpeng Zhao (known as CZ) was pardoned by former President Trump. This move was seen as a positive signal for crypto-friendly policies. Analysts connected the price increase to WLFI’s partnership with Binance on USD1 and related trading products, as reported by U.Today.

Why it matters:
While this reduces short-term regulatory concerns, WLFI’s close ties to Trump—who controls about 60% of the project—mean political risks remain high. Long-term success will depend more on how well WLFI’s products perform than on political headlines.

3. Debit Card Launch with Apple Pay (September 23, 2025)

What happened:
WLFI announced plans for a debit card linked to USD1 and a new app combining features like Venmo and Robinhood, with Apple Pay integration. The launch has been delayed to late 2025 due to technical challenges with handling transactions across different blockchains, according to CoinSpeaker.

Why it matters:
This development could bring millions of new users to USD1 if successful. However, there are risks in execution, especially since competitors like PayPal and Coinbase already offer similar products with rewards. WLFI will need to deliver a smooth and unique user experience to stand out.

Conclusion

WLFI’s future depends largely on growing institutional use of USD1 and the influence of Trump’s regulatory stance. However, risks remain from political ties and high transaction fees. The upcoming Apple Pay integration could be a key step in connecting cryptocurrency with everyday finance—or it could reveal ongoing challenges in scaling the technology.

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What is expected in the development of WLFI?

World Liberty Financial (WLFI) is gearing up for key developments aimed at growing its use and acceptance:

1. Debit Card & Retail App (Q4 2025) – Launching a Visa debit card and retail app that lets users pay with the USD1 stablecoin through Apple Pay.
2. Real-World Asset (RWA) Tokenization (Q1 2026) – Using USD1 to back tokenized real-world assets like government bonds and commodities, attracting institutional investors.
3. Bithumb Partnership (Q4 2025) – Collaborating with South Korea’s Bithumb exchange to create easier ways to convert between crypto and traditional money.

In-Depth Look

1. Debit Card & Retail App (Q4 2025)

What’s happening? Zak Folkman, WLFI’s co-founder, announced that a Visa debit card and retail app will be available soon. This app will allow people to use the USD1 stablecoin for everyday purchases via Apple Pay. It will also include features for peer-to-peer transfers and trading, aiming to make crypto payments simple and accessible (Yahoo Finance).

Why it matters: This move could boost WLFI’s ecosystem by making USD1 more useful for daily transactions. However, it faces competition from popular payment apps like Venmo, which already have a large user base.

2. Real-World Asset Tokenization (Q1 2026)

What’s happening? WLFI plans to back tokenized assets such as U.S. Treasuries and commodities with USD1, bridging traditional finance (TradFi) and decentralized finance (DeFi) (ChainDesk).

Why it matters: This could attract large institutional investors looking for secure, blockchain-based assets. Still, regulatory concerns about transparency and compliance with asset-backed tokens could slow progress.

3. Bithumb Partnership (Q4 2025)

What’s happening? WLFI signed a memorandum with Bithumb, one of South Korea’s largest crypto exchanges, to explore crypto-to-fiat payment options (Yahoo Finance).

Why it matters: This partnership could open up access to Asian markets and increase liquidity for WLFI. However, South Korea’s strict crypto regulations might delay or complicate this effort.

Conclusion

World Liberty Financial’s roadmap focuses on making USD1 a widely used stablecoin through consumer-friendly payment options and institutional asset tokenization. While promising, these plans face challenges like regulatory hurdles and competition. Strategic partnerships, like the one with Bithumb, aim to improve liquidity and market reach. Additionally, discussions about token supply management (MarcosBTCreal) could impact USD1’s market position. The big question remains: Will these efforts establish USD1 as a leading stablecoin, or will regulatory and market challenges hold it back?

What updates are there in the WLFI code base?

World Liberty Financial (WLFI) recently upgraded its technology to improve cross-chain transfers and control token supply more effectively.

1. Cross-Chain Transfers via CCIP (September 1, 2025) – Enabled secure transfers of WLFI tokens across multiple blockchains using Chainlink’s technology.
2. Buyback-and-Burn Mechanism (September 26, 2025) – The system now automatically uses fees to buy back WLFI tokens and permanently remove them from circulation.
3. Vesting Contract Upgrades (September 1, 2025) – Improved the process for early investors to claim their tokens, with better controls and fee management.

Deep Dive

1. Cross-Chain Transfers via CCIP (September 1, 2025)

What happened: WLFI integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which allows users to move WLFI tokens smoothly between popular blockchains like Ethereum, Solana, and BNB Chain.

This update uses the Cross-Chain Token (CCT) standard, letting users bridge WLFI and USD1 tokens securely through Chainlink’s trusted network. This reduces dependence on any single blockchain and keeps transactions safe using decentralized oracles (trusted data sources).

Why it matters: This is a positive step for WLFI because it makes the token more accessible across different blockchain platforms. This could encourage more use in decentralized finance (DeFi) applications. However, users should stay aware of potential risks related to bridging tokens between chains. (Source)

2. Buyback-and-Burn Mechanism (September 26, 2025)

What happened: WLFI introduced a community-approved system that uses fees collected by the protocol to buy WLFI tokens from the market and then permanently remove (burn) them.

For example, on September 26, the protocol spent $200,000 to buy back 3.8 million WLFI tokens, which were then burned, reducing the total supply.

Why it matters: This mechanism can help stabilize or increase WLFI’s price over time by reducing the number of tokens available. However, its impact depends on how much fee revenue the protocol generates, which is currently small compared to the total 24.6 billion WLFI tokens in circulation. (Source)

3. Vesting Contract Upgrades (September 1, 2025)

What happened: The “Lockbox” smart contract, which manages how early investors claim their tokens, was updated. Now, 20% of tokens unlock initially, and users pay Ethereum gas fees to claim them.

Some users experienced temporary issues claiming tokens due to technical glitches, highlighting risks when relying on upgradeable smart contracts controlled by a central party.

Why it matters: This update is neutral for WLFI. While vesting helps prevent early investors from selling all their tokens at once (which can hurt prices), the process requires users to manually claim tokens and pay transaction fees, which can be a barrier for smaller investors.

Conclusion

WLFI’s recent updates show a clear focus on making the token more interoperable across blockchains and managing supply carefully. However, challenges remain, such as potential security risks with cross-chain bridges and the complexity of token vesting. Whether these improvements will lead to sustained growth in decentralized finance use or be overshadowed by the token’s political associations remains to be seen.