Written by: Dennis Liu, General Partner at Momentum 6

Translated by: Yuliya, PANews

As the Trump family crypto project $WLFI is about to launch, market attention is increasing. Dennis Liu, General Partner at Momentum 6, delves into the investment value of $WLFI in this article. He not only analyzes in detail the stablecoin mechanism tied to U.S. Treasury bonds, the strong institutional backing, but also discloses his seven-figure investment position and a $1 price target. The author believes that $WLFI integrates multiple attributes of politics, finance, and high speculation, making it one of the most noteworthy events in this cycle. Below is the original article, translated by PANews.

What is $WLFI? Why is it important?

$WLFI is the official token of Trump, with co-founders including Eric Trump, Donald Trump Jr., and Barron Trump. Trump himself was already listed in the team before taking office as president. This project is not just a simple memecoin but is closely tied to the regulated stablecoin USD1. USD1 is supported by U.S. Treasury bonds, making $WLFI both a political tool and a financial asset.

On September 1, $WLFI will be launched on all major trading platforms including Binance, and futures contracts have also been initiated. According to the pre-sale arrangement, 20% of the tokens can be unlocked for circulation 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 my initial purchase price at $0.40, then increased my position at $0.30, and bought heavily in the range of $0.22 to $0.24. My average entry cost is $0.28, while the current price is $0.25. Yes, you can even enter at a price cheaper than mine now.

The key to my strategy is to use only 1x leverage, meaning no leverage. The pre-market price volatility is intense, and even 1.5x leverage could 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 securely hold a seven-figure dollar long position in $WLFI.

Price target and institutional layout

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

For reference, a memecoin previously launched by Trump, which lacked utility and was hardly promoted, still reached a peak FDV of $73 billion. In contrast, $WLFI not only has official recognition but is also tied 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 made early arrangements:

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

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

  • The 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 price of Nasdaq-listed companies.

Diversified investment strategy

In addition to holding directly, 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, relying solely on volatility can still capture considerable returns.

In addition, there are two higher-risk ecosystem projects worth noting:

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

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

These projects have smaller market capitalizations, which means greater potential upside, but also higher risks.

If the price of $WLFI doubles, the prices of these two tokens could increase by 3 to 4 times; but if $WLFI drops, their decline could 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 its connection to U.S. Treasury bonds make it a focal point of market attention.