Trump-Backed WLFI Token Launch Faces Investor Risk Warnings
Analysts warn Trump-backed WLFI token’s Memorial Day debut could put retail investors at risk due to limited supply and high valuation.
NEW YORK — The World Liberty Financial token (WLFI), a crypto project closely tied to U.S. President Donald Trump’s political and business network, is set to begin trading on September 1. Analysts at Compass Point warn the debut could expose retail traders to steep losses, citing limited supply and heavy insider holdings.
WLFI, built on Ethereum, will enter exchanges after a year-long run as a governance-only asset. Only a portion of its 100 billion tokens will become tradable at launch. Roughly 22.5% of the supply is held by Trump’s family, according to project filings, though those tokens are locked. Even so, analysts caution that the family’s holdings will be valued at whatever market price the token commands, potentially inflating fully diluted valuations.
Compass Point compared the rollout to Trump’s earlier TRUMP memecoin, which hit a peak valuation of $44 billiondespite 80% of supply being insider-controlled. That token has since lost nearly 90% of its value, leaving retail buyers with significant losses. Analysts fear a repeat if WLFI lists on major platforms like Coinbase at an “excessive” valuation while circulating supply remains low.
Early market signals suggest volatility. On decentralized exchange Hyperliquid, WLFI synthetic contracts opened at $0.43but quickly fell to $0.25, implying a market cap near $25 billion. Access has been restricted to accredited investors, and current holders must complete a multi-step process on the project’s website before they can trade.
The July proposal that approved WLFI’s transition to tradability left the timeline for further token unlocks vague. Team, founder, and advisor allocations remain locked under longer schedules, though future releases will depend on additional votes by token holders.
WLFI’s debut will test whether a politically branded token can sustain demand beyond its insider base. The token enters the market with most of its supply still locked, a structure that previously fueled sharp price swings in Trump’s earlier memecoin. Analysts say the opening days of trading will reveal whether WLFI stabilizes or repeats the boom-and-crash pattern seen in January.
Also Read: Trump Promotes New WLFI Crypto Token After Disappointing Initial Sales
