Compass Point Investment Bank warns that World Liberty Financial (WLFI), which plans to go public on Memorial Day, poses significant risks to retail investors.

The risk primarily comes from its token distribution: the Trump family holds over 20% of the tokens, which, although not yet tradable, are included in the fully diluted valuation (FDV). If the exchange overestimates the launch, it could repeat the downfall of the TRUMP token — which has dropped 89% from its peak, resulting in substantial losses for retail investors.