Trump Family Token Plummets 24% in 24 Hours: Political Risks are Ripping Apart the Crypto Market
The Trump family's WLFI token has suffered a severe setback in the past 24 hours, plummeting 24% and losing hundreds of millions in market value. This sudden collapse has not only severely impacted investor confidence but has also brought the risks of 'politicians participating in crypto projects' into the spotlight.
WLFI was originally seen as a star DeFi project being developed by the Trump family for 2024, supported by notable capital figures like Sun Yuchen. However, as Trump returns to the White House, the project's 'political label' has become its heaviest burden.
The undercurrents of regulatory risk are surging. As the President of the United States, Trump's policy direction directly influences the crypto market, and he himself is a potential beneficiary of WLFI. This conflict of interest has almost forced the SEC to take action. The SEC has already confirmed that it is conducting a preliminary investigation into the project.
The panic selling by investors stems from three core driving forces:
1. Regulatory risk suddenly escalating — The project may face mandatory scrutiny or even legal disputes;
2. Political uncertainty intensifying — Policy shifts and geopolitical games leave the market directionless;
3. Sustainability being questioned — The technology may be flawless, but a collapse of trust is the fatal blow.
From a purely technical perspective, WLFI does not have significant flaws, and its smart contracts have passed authoritative audits. However, in the capital markets, the shadow of politics is often more lethal than code vulnerabilities.
The more lethal concern is the international attention. The European Union has indicated that it may adjust its regulatory framework accordingly, which means the WLFI incident is evolving from a single project crisis into a catalyst for global policy changes.
This drop is not just a normal market fluctuation; it is a wake-up call:
The combination of politics and crypto may not be empowering but is rather poisonous.
It not only shakes a single project but could also accelerate the emergence of new global regulations 'banning politicians from directly engaging in crypto projects.'
