Trump family WLFI "destruction farce" exposed! I harshly tear apart the fake market rescue, it's time for the retail investors to wake up!
Recently, WLFI token under the Trump family claimed to "destroy 47 million pieces" to save the market, but upon closer inspection, this operation actually accounts for less than 0.05% of the total amount of hundreds of billions, with minimal real impact, and has been questioned by the outside world as a carefully planned "confidence performance."
The project party claims that the treasury tokens are not publicly sold, and everything is decided by community voting, but in reality, the Trump family controls over 20 billion tokens. The so-called setting of "single wallet voting not exceeding 5%" is difficult to achieve true decentralized governance in the face of highly concentrated token distribution.
WLFI plummeted 25% on its first day of listing, with market capitalization dropping from 40 billion to 5.4 billion dollars. The root cause is that the project party changed the circulating volume from the market expectation of 5 billion to 25 billion at the last moment, severely damaging investor trust. The community criticized the lack of transparency in its rules and arbitrary changes in information.
Although the project party proposed a "long-term repurchase and destruction" plan, attempting to support the token price with transaction fees, in front of a massive circulation market, this measure is unlikely to truly improve supply and demand. There may be short-term hype, but long-term trust foundation is still lacking.
The underlying interest structure is even more concerning: companies related to the Trump family, DT Marks DEFI, LLC, receive 75% of the net income from token sales, and partner Alt5 Sigma Corp. not only receives 7.5% of the tokens, but its stock price is also highly correlated with WLFI, dropping nearly 50% in two days, reflecting a close interest relationship.
This project also faces significant compliance risks. Trump's political identity makes the project susceptible to regulatory scrutiny, and Congress has already focused on whether it attempts to influence SEC enforcement. In addition, the UAE sovereign fund invested 2 billion dollars in Binance through WLFI's stablecoin USD1, which may be unconstitutional, further exacerbating regulatory risks.
WLFI is currently priced at about 0.22 dollars, with a fully diluted valuation of 20 billion, already considered overvalued. If it cannot truly break free from personal halo and establish a credible ecosystem and governance, no matter how many times it is destroyed, it is difficult to change the situation of "concept hype greater than substance."
Retail investors should remain vigilant and view such intensive, highly centralized projects rationally. Whether the so-called market rescue is sincere self-rescue or a trick performance still needs time to test $BTC
