The circulating token supply far exceeds previous plans, and the "Trump Family Core Token" has plummeted continuously after its listing
According to reports, the Trump family's core token "WLFI Token" announced at the last moment before issuance that 25 billion tokens would enter circulation, approximately five times the 5 billion tokens previously expected by investors, shaking market confidence. Currently, it has fallen about 25% from the issuance price. To stabilize the market, the project team has destroyed 47 million tokens and proposed to continue the destruction mechanism. Analysts believe the project's long-term value depends on the actual application of the ecosystem rather than speculative hype
The WLFI token launched by the Trump family faced a sharp decline after its listing on Monday, currently trading about 25% lower than its issuance price, with a market capitalization of approximately $5.4 billion. This highly anticipated cryptocurrency project triggered a loss of market confidence due to the sudden disclosure that the circulating supply of tokens far exceeded investors' expectations.
On September 3rd, according to media reports, World Liberty Financial Inc. announced at the last moment before issuance that there would be 25 billion tokens in circulation, approximately five times the previous investor expectation of 5 billion tokens.
The company was co-founded by Trump’s sons Eric Trump and Donald Trump Jr., with Trump himself listed as the "honorary co-founder." According to information on the project’s website, the Trump family directly or indirectly controls over 20 billion WLFI tokens.
To stabilize market sentiment, World Liberty has removed 47 million tokens from circulation through a burn mechanism, valued at approximately $11 million.
Analysts pointed out that the true test of the WLFI project lies in whether the World Liberty ecosystem can establish a solid footing beyond speculation.
Controversy Over Circulating Supply Triggers Investor Discontent
Investors expressed strong dissatisfaction with the sudden change in the circulating supply of WLFI tokens. On World Liberty's governance forum, several investors questioned the data changes and the ambiguity surrounding the qualification of "early supporters."
It was disclosed that of the total supply of 100 billion tokens, most are still non-tradable and primarily held by insiders.
Billions of tokens will be allocated to Alt5 Sigma Corp., a publicly traded crypto payment company closely associated with several key figures at World Liberty. Alt5 recently agreed to hold about 7.5% of the total supply of WLFI and raised $1.5 billion in funding.
Online traders noted that estimates of the circulating supply ranged from 3% to 25%, exacerbating market confusion within hours of issuance. AirdropAlert.com founder Morten Christensen stated:
"Ideally, the first-day performance should be good. Unfortunately, the team miscommunicated before the issuance, and the negative sentiment on social platform X turned the first day red (referring to a decline)."
Project Team Takes Stabilization Measures to Address Market Volatility
In response to market turbulence, World Liberty Financial has implemented several measures to try to stabilize investor sentiment.
According to a previous article by Jianwen, in addition to the already implemented burn of 47 million tokens, the team also proposed to burn some WLFI tokens received as transaction fees to reduce the circulating supply. This proposal has received widespread support but has not yet been formally voted on by WLFI holders Despite a poor performance on its first day of trading, a spokesperson for World Liberty Financial stated, "The issuance of WLFI has been a tremendous success."
According to an article mentioned, Eric Trump and Donald Trump Jr., the sons of Donald Trump, both celebrated WLFI's listing on social media on Monday. Eric Trump pointed out on the X platform that WLFI's trading price is significantly higher than the early round prices, using this as evidence of strong performance.
Additionally, reports indicate that the sharp decline in Alt5 Sigma's stock price highlights the company's fate being closely tied to the WLFI token. On Tuesday, Alt5's stock fell by 29%, and on Wednesday it dropped nearly 20%, reflecting market concerns about WLFI's performance spreading to the traditional stock market.
Although Alt5 Sigma received tokens that can be traded, the company stated that its goal is accumulation rather than sale. This underscores the degree of the company's fate being closely linked to WLFI.
Long-term Challenges for Ecosystem Development
Analysts believe that the true test of the WLFI project lies in whether the World Liberty ecosystem can establish a solid footing beyond speculation. The project's stablecoin USD1 has a market capitalization of approximately $2.7 billion, and the team plans to launch lending and other services.
Dessislava Aubert, a senior analyst at Kaiko, stated:
"Volatility on the issuance day is quite common. The recently proposed fee-burning mechanism may generate short-term speculation. However, long-term value depends on the adoption of the ecosystem, especially the USD1 that drives WLFI usage, which faces fierce competition in the stablecoin market despite being listed on major centralized exchanges."
Lex Sokolin of Generative Ventures noted that given WLFI's fully diluted valuation of over $20 billion, it has been treated more generously than other similar crypto projects. "Compared to these peer projects, WLFI has received a very friendly reception from the market so far," he said.
Early holder Bruno Ver mentioned that he initially planned to sell quickly but decided to wait: "At this moment, I'm not worried; I'm just curious about how the market will react and develop in the long term."
