Original text: Dennis Liu, General Partner of Momentum 6

Compiled by: White55, Mars Finance

As the Trump family's crypto project $WLFI is about to launch, market attention is heating up. Momentum 6 general partner Dennis Liu delves into the investment value of $WLFI in this article. He not only analyzes the stablecoin mechanism linked to U.S. Treasury bonds and its strong institutional backing, but also reveals his seven-figure investment position and a price target of $1. The author believes that $WLFI combines political, financial, and highly speculative attributes, making it one of the most noteworthy events in this cycle. Below is the original text, which has been compiled by PANews.

What is $WLFI? Why is it important?

$WLFI is Trump's official token, with co-founders including Eric Trump, Donald Trump Jr., and Barron Trump. Trump himself was also included in the team before he took office. This project is not just a simple memecoin, but is closely linked to the regulated stablecoin USD1. USD1 is backed by U.S. Treasury bonds, making $WLFI a combination of political tools and financial attributes.

$WLFI will launch on all major trading platforms, including Binance, on September 1, with futures contracts also initiated. According to the pre-sale arrangement, 20% of the tokens can be unlocked immediately, while the remaining 80% will enter a lock-up mechanism. For most traders, this is the first opportunity to gain exposure to $WLFI.

Position and strategy

I have been buying $WLFI through the pre-market futures market, with an initial purchase price of $0.40, then increasing my position at $0.30, and buying heavily in the $0.22 to $0.24 range. My average entry cost is $0.28, while the current price is $0.25. Yes, you can even enter at a cheaper price than I did now.

The key to my strategy is to use only 1x leverage, which means no leverage at all. The price fluctuations in the pre-market are extreme, and even 1.5x leverage can lead to liquidation. Using 1x leverage is essentially equivalent to spot trading, with no liquidation risk and no funding fees. This is why I can hold a seven-figure dollar long position in $WLFI securely.

Price targets and institutional layout

My price target is for $WLFI to reach $1 (corresponding to a fully diluted valuation of $100 billion).

For reference, a previous memecoin launched by Trump, which lacked utility and was hardly promoted, still reached a peak FDV of $73 billion. In contrast, $WLFI not only received official recognition but is also linked to U.S. Treasury bonds and launched during Trump's presidency, all of which significantly enhance its credibility and potential ceiling.

Institutional investors have also positioned themselves in advance:

  • DWF Labs invested $25 million at a price of $0.10;

  • Aqua One Fund invested $100 million at a price of $0.125;

  • Nasdaq-listed company ALT5 Sigma invested $1.5 billion at a price of $0.20.

Compared to the current price of $0.25, it is only 25% higher than the investment prices of Nasdaq-listed companies.

Diversified investment strategy

In addition to directly holding, I also run a $WLFI trading bot on Pionex. The grid range is set from $0.10 to $0.42. In 22 hours, it has already brought me a 2.5% profit (annualized yield of up to 960%). For investors unwilling to hold long-term, considerable gains can still be captured solely through volatility.

Additionally, there are two other higher-risk ecosystem projects worth paying attention to:

  • One is $BLOCK (Blockstreet), founded by the Chief Information Officer of $WLFI, which is a launch platform for USD1;

  • The other is $DOLO (Dolomite), led by the Chief Technology Officer of $WLFI, which is a DeFi service provider for USD1.

These projects have smaller market capitalizations, meaning they have greater potential upside, but also higher risks.

If the price of $WLFI doubles, the prices of these two tokens could rise by 3 to 4 times; but if $WLFI falls, their decline would be even more severe. Therefore, achieving balance in the portfolio is crucial.

Overall, $WLFI is undoubtedly one of the most significant token events in this cycle. Its identity is not just a narrative but a combination of political influence, financial attributes, and speculative value. The official Trump token, institutional backing, and the link to U.S. Treasury bonds make it a focal point of high market attention.