The Trump family’s $WLFI token recently made a big move of 'destroying 47 million tokens,' claiming it's to save the market. Following Shengshou’s detailed analysis, this is not saving the market at all! It’s clearly the old trick of 'insiders cutting韭菜 while retail investors take the fall'!
Let’s first talk about this destruction operation. The project team claims to have destroyed 47 million tokens, which sounds like a lot, but when you calculate it, the total token supply is 100 billion, and after destruction, there are still 99.53 billion left, meaning the circulating supply hardly changed. It's like having 1000 dollars and losing 50 cents, yet claiming, 'I suffered a huge loss.' What's even more ridiculous is that they emphasize, 'The tokens unlocked from the treasury will not be sold publicly, but will be decided by community vote.'
Community voting? Don’t be naive! The Trump family directly or indirectly controls over 20 billion tokens, and in the voting mechanism, a single wallet can cast a maximum of 5% of the votes. How is this decentralized governance? It’s clearly 'fake democracy with the same old tricks'!
Looking back at the accounts from recent days, WLFI plummeted 25% on its launch day, with its market cap diving from 40 billion to 5.4 billion. Why? Because the project team only revealed at the last moment that 'the circulating tokens are not 5 billion, but 25 billion'! A token supply five times higher than market expectations shattered retail investor confidence. Investors are shouting in forums, saying the qualifications of 'early supporters' are vague, and the data changes on a whim. How is this a transparent project? It’s clearly an 'information black hole'!
What’s even more frustrating is that the project team has also devised a long-term plan of 'buyback + destruction,' claiming that all transaction fees will be used for buyback and destruction. But the problem is, how much can these fees be? Is it enough to fill the hole of 25 billion tokens? Shengshou himself is laughing at this point; it's really just a short-term heat-up, but in the long run, it’s a superficial fix!
Speaking of power structures, the Trump family controls 75% of the net revenue from token sales through affiliated company DT Marks DEFI, LLC. Alt5 Sigma Corp. took 7.5% of the tokens, and this company is in cahoots with WLFI executives. Even more outrageous is that Alt5's stock price plummeted alongside WLFI, dropping nearly 50% in two days. How is this an independent project? It’s clearly a利益链 of 'prosper together and suffer together'!
In terms of ecology, the market cap of WLFI's stablecoin USD1 is 2.7 billion, which looks substantial, but compared to established stablecoins like USDT and USDC, it’s just a little brother. Compliance review is more troublesome; the political labeling of the Trump family combined with large overseas investments directly clashes with regulatory scrutiny. Congress is already keeping an eye on them, investigating whether they influence SEC enforcement. Also, there's that $75 million investment from Sun Yuchen, which is suspiciously well-timed, making it hard to ensure it’s not a 'quid pro quo'!
Finally, let’s discuss another risk. The UAE sovereign fund invested 2 billion in Binance through USD1, while Binance was previously fined 4.3 billion by the US. This transaction may violate the constitutional clause that 'the president shall not accept benefits from foreign governments.' Once regulators step in, ESG funds will definitely avoid it, and institutional funds will not be able to enter.
Currently, the price of WLFI is hovering at $0.22. Some people think a fully diluted valuation of 20 billion is already absurdly high, while others still fantasize about 'long-term value.' In my opinion, whether this project can succeed depends largely on whether it can escape Trump’s aura and create a real ecology, balancing decentralization with centralized control. Otherwise, no matter how many tokens are destroyed, it will just be a new twist on 'cutting韭菜'!
Brothers, keep your eyes open! Is this operation really saving the market or just a show? Is there sincerity or just a trick? Everyone has their own bottom line; feel free to share your views on this.
Accurately predicting trends and capturing the best opportunities, follow Shengshou to understand firsthand market conditions and layouts!!!
