Introduction
The project that has been generating significant buzz since the beginning of the year: World Liberty Financial (WLFI) announced in August that it will issue tokens in early September and pre-market trading will commence. Based on the subscription cost of early investors compared to the current pre-market trading price, investors who subscribed at the beginning of the year have already made substantial profits.
This article not only analyzes the functions of WLFI, a DeFi platform backed by the Trump family, and the potential selling pressure at launch but also tells you how to find profit opportunities at the peak of the listing hype.
WLFI: A DeFi platform backed by the Trump family
The Trump family aims to create a borderless decentralized financial platform, hence the birth of World Liberty Financial (WLFI). This platform has not only attracted countless investors' attention but has also raised hundreds of millions of dollars during fundraising. If you are among the first batch of users who subscribed at a cost of $0.015, the current pre-market price indicates an increase of about 20 times, which is quite remarkable.
Introduction to the WLFI platform
The WLFI official website shows that in the future, WLFI will provide users worldwide with functions such as trading, lending, and depositing without borders. Users holding the platform token $WLFI can also participate in platform governance and vote together to decide how the platform should operate next.
In the past, Trump has issued NFTs and launched the meme coin $TRUMP, so it is not excluded that if Trump wishes to launch any blockchain-related product in the future, it may be done through the WLFI platform for preheating and sale.
WLFI issues a stablecoin: USD1
In the past year, many on-chain platforms have started integrating the USD stablecoin USD1, which is also issued by the WLFI platform. As a stablecoin backed by the Trump family, it has reached a market value of $2.5 billion since its issuance, growing rapidly. The recently launched token subscription platforms Buidlpad and Four.meme allow the use of USD1 for token investment, replacing USDT and USDC.
WLFI’s ambition to launch this stablecoin is not limited to the cryptocurrency field; it also aims to use it in daily life, whether for cross-border payments, remittances, or international investments, with the hope that USD1 will serve as a more convenient and cost-effective currency tool.
Currently, many exchanges have launched USD1-related incentive activities, where users can accumulate WLFI points simply by trading, holding USD1, or using USD1 as a base currency for cryptocurrency transactions on the exchanges. In the future, there is hope to exchange these points for airdrops of $WLFI tokens.
WLFI Token Economics
$WLFI is primarily used as a governance token for the WLFI platform. Currently, the known function is only to participate in voting to determine the future direction, and whether it can share platform revenue and enhance staking rewards as other DeFi protocols do remains to be seen.
$WLFI has a total supply of 100 billion tokens, issued on the Ethereum ERC-20 platform, with the following distribution:
Public sale: 35% (35 billion tokens)
Community development and user incentives: 32.5% (32.5 billion tokens)
Initial supporters: 30% (30 billion tokens)
Team and advisor rewards: 2.5% (2.5 billion tokens)
To avoid a large sell-off of tokens at the initial stage, the WLFI team will only allow early investors to unlock 20% of their tokens when trading starts, while the remaining 80% will require community voting to decide. However, at the time of launch, the WLFI team will prioritize allocating 3% of the circulating supply for CEX and DEX as liquidity.
Estimated initial circulating market value of tokens
Currently known, WLFI will unlock 20% of the tokens from the public sale rounds at $0.015 and $0.05, totaling approximately 5 billion $WLFI tokens. If we estimate using a price of $0.33, the market value at launch would be around $1.65 billion. Compared to top DeFi protocols like Aave and Ethena, there is still significant room for market value growth.
Number of Lockboxes
According to Etherscan smart contract monitoring, of the 25 billion $WLFI public sale tokens priced at $0.015 and $0.05, only about 16.8 billion tokens have been signed for unlocking on the WLFI official website, which is approximately 67%. This means that the initial selling pressure may be lower than the expected 20% in the public sale round.
Who are the industry giants and institutional investors involved with WLFI?
WLFI has attracted significant attention from well-known investors and institutions since the Trump family's announcement at the beginning of the year, with total fundraising amounting to approximately $500 million to $600 million, all conducted through token sales.
Largest independent investor: Sun Yuchen
Sun Yuchen, the founder of TRON, strongly supported the WLFI proposal at the beginning of the year, investing a total of $75 million. Since this investment was made earlier than the first public sale, it is estimated online that the investment cost could be lower than $0.015. This investment has also brought in hundreds of millions of dollars in revenue for him.
Web3 Venture Capital Fund: Aqua1 Foundation
Aqua1 Foundation announced a $100 million investment in WLFI in June. Although the purchase cost and quantity have not been disclosed, it is certain that Aqua1 Foundation will become a major investor in WLFI.
USD1 Market Maker: DWF Labs
DWF Labs announced a $25 million investment in the WLFI project, estimating the financing cost at $0.1. In addition, this institution is also a market maker for USD1, so WLFI is likely also being market made by DWF Labs.
What are the possible trading opportunities after the token is listed?
$WLFI is set to attract a lot of investor attention once it launches on September 1, and there may be good trading opportunities at that time. Not only the token itself, but as a DeFi platform, WLFI may also launch initial incentive activities.
1. Direct trading to earn price differences
$WLFI has locked most of its tokens initially, and the current unstaking rate is less than 70%. Therefore, if the market can withstand the selling pressure from early investors, there may be a possibility of price increase later.
2. Arbitrage between exchanges
$WLFI is set to go live almost simultaneously on top exchanges like Binance, OKX, and Hyperliquid. If the exchanges do not open deposits and withdrawals at the time of listing, it may lead to price differences and fee discrepancies for $WLFI, which can then be exploited for arbitrage across different exchanges.
3. WLFI platform activities
Although WLFI currently has not launched any DeFi functions, if relevant features are opened when the token is listed, there may be activities such as deposit and liquidity pool incentives, allowing users to earn $WLFI token rewards while saving money.
Investment risks hidden in WLFI
For investors who did not participate in the WLFI public sale and wish to purchase $WLFI tokens, the current purchase cost is more than ten times higher than the first round public sale, and after investing, they must also bear the risks of declining hype and the absence of practical applications on the DeFi platform.
Among them, the risk of declining hype is the most serious. Looking back, although Trump-related products like NFTs and the Trump meme coin $TRUMP could earn tens of times the income during the hype period, their value disappears once the excitement fades. For example, even though the Trump coin once peaked at nearly $80, it now only holds a value of $8.7, a drop of nearly 90%.
Conclusion
WLFI is destined to become a prominent new star in the cryptocurrency market in September. Whether it is the Trump family's marketing strategy for the platform's launch, the holding points of USD1, the demand for new token subscriptions, or the selling pressure from early investors, all are matters that the market is paying attention to.
For investors who did not participate in the public sale, it is recommended to first observe the selling pressure of WLFI and the operational situation of the platform before assessing whether to invest, otherwise, they may become the ones left holding the bag for public sale participants.
This report is for informational sharing purposes only. The content does not constitute any form of investment advice or decision-making basis. The data, analysis, and opinions cited in the article are based on the author's research and public sources and may contain uncertainties or be subject to change at any time. Readers should make prudent investment judgments based on their own circumstances and risk tolerance. For further guidance, it is recommended to seek professional consulting advice.
