WLF is a decentralized finance project publicly supported by the Trump family, with its governance token WLFI officially starting trading at 8 AM Eastern Time on September 1.
According to CoinDesk data, WLFI dropped 16% on September 1, falling to about $0.23, with a circulating market capitalization of approximately $6.4 billion on exchanges like Binance and Coinbase. WLFI opened at $0.20 on its first day of trading, surged to a high of $0.40 within 5 minutes, but then quickly fell back, eventually stabilizing at $0.22 by 5 PM.
The total supply of WLFI is 100 billion tokens, and this transaction only unlocks 20% of the holdings of early investors and insiders for sale, while the remaining portion is temporarily locked. An entity associated with the Trump family, DT Marks DEFI LLC, holds a 38% stake in WLF and possesses 22.5 billion WLFI tokens. Trump himself holds about 15.75 billion WLFI tokens, which is valued at approximately $3.6 billion based on the trading price on September 1.
However, the trading of WLFI is controversial and poses significant risks. The Wall Street Journal reported that the launch of WLFI involves a complex and extremely rare “circular trading” in traditional finance, raising potential market manipulation suspicions. Additionally, Compass Point analysts have warned that concentrated insider ownership and a lack of public market price discovery could severely impact retail traders if trading volume quickly decreases.
