World Liberty Financial (WLFI), a DeFi project supported by the Trump family, will launch on the Ethereum mainnet on September 1. WLFI's core products include the stablecoin USD1, as well as lending and the WLFI App, which have yet to be launched. The total supply of WLFI tokens is 100 billion. Previously, WLFI raised approximately $760 million, with investors including DWF Labs and TRON founder Justin Sun. In August of this year, Nasdaq-listed ALT5 Sigma announced an investment of $1.5 billion through equity investments and warrants, raising WLFI's total fundraising to about $2.26 billion. As part of the agreement, ALT5 Sigma will receive WLFI tokens valued at $750 million and will exchange them for 1 million shares of WLFI stock and 99 million prepaid warrants at an exercise price of $0.01. They also plan to establish a WLFI cryptocurrency reserve pool. It is noteworthy that while the Trump family's shareholding in WLFI has decreased to about 40%, they still hold absolute control and enjoy 75% of net income distribution.
According to WLFI's official announcement, only 20% of the initially sold tokens will be unlocked and transferable at the TGE, while the remaining 80% will be decided by community voting. The 20% unlock corresponds to the initial amounts for two rounds of public investors, totaling approximately 5 billion WLFI tokens. Tokens held by the founding team, advisors, and partners will remain locked. Currently, the WLFI Lockbox feature has been launched, and users must activate the Lockbox contract to receive the corresponding tokens after the TGE. The current price of WLFI futures is $0.2622; if this price holds at the time of the spot launch, first-round public investors (cost $0.015) could profit 17.48 times, while second-round public investors (cost $0.05) could profit 5.24 times.
CoinW Research Institute comments: WLFI tokens do not enjoy profit-sharing from the project, as the protocol's earnings belong to the shareholders of the entity. This means that token holders only possess governance voting rights and cannot directly share in the business profits, resulting in a clear disconnect between governance rights and economic rights. The $1.5 billion capital injected by ALT5 Sigma theoretically provides price anchoring and buying support for the tokens. However, the direct involvement of Trump family members in the ALT5 Sigma board has heightened market concerns about the independence of the funds and governance transparency. Meanwhile, the implementation of WLFI's business is still in its early stages. The core product USD1, aside from serving a special case for Abu Dhabi's MGX company investment, still lacks sustainable application scenarios. What truly determines WLFI's future direction is whether it can convert short-term market enthusiasm into sustainable financial scenarios and real user demand, thus transforming into long-term ecological value.
