Cryptocurrency event: Trump's family's "core tokens" begin trading

# Written by: Ye Zhen, Bao Yilong  

# Source: Wall Street Insights  

Based on the current futures price range of $0.20 to $0.30, the fully diluted valuation (FDV) of WLFI has exceeded $40 billion, which is sufficient to rank it among the top 45 cryptocurrencies by market capitalization. Early investors can unlock and sell 20% of the total tokens they hold, accounting for approximately 5% of the total supply. Some analysts believe that by restricting early-stage liquidity, the project team can reduce short-term selling pressure and thereby maintain price stability. However, other views hold that "a low circulating supply makes it easier to drive up prices."  

A cryptocurrency project deeply tied to the Trump family is launching its token into the public market. This is not only a major event in the crypto world but also the ultimate test of Trump’s influence in the fintech sector.  

Today (September 1st), WLFI, the governance token of the World Liberty Financial project publicly supported by the Trump family, will officially start trading. At 12:00 noon UTC, the Token Generation Event (TGE) will kick off, allowing early investors to unlock and sell 20% of the total tokens they hold—this portion accounts for roughly 5% of the total supply.  

This debut will take place on major cryptocurrency exchanges such as Binance and Coinbase, attracting significant market attention.  

Based on the current futures price range of $0.20 to $0.30, WLFI’s fully diluted valuation has surpassed $40 billion, securing its spot among the top 45 cryptocurrencies by market cap. However, as of the Asian trading session on Tuesday, the price of the WLFI/USDT perpetual contract had plummeted by over 30% compared to Monday’s early-morning quote of $0.3151.  

## WLFI/USDT Drops by Over 30% Intraday  

It is estimated that the value of tokens held by Trump himself through related entities alone may exceed $6 billion, surpassing Forbes’ previous estimate of his net worth.  

These developments come as the Trump family’s influence in the crypto space continues to grow. Since Trump returned to the White House, he has signed a stablecoin bill, and his sons have been deeply involved in crypto-related businesses. The launch of WLFI trading marks the market’s first comprehensive test of this financially innovative product with strong political overtones.  

## What Exactly is WLFI?  

WLFI is the governance token of World Liberty Financial, a decentralized finance (DeFi) project, with a total supply of 100 billion tokens. Founded in September last year under the guidance of real estate tycoon Steve Witkoff and his son Zach, the project’s co-founders include crypto industry active figures Chase Herro and Zak Folkman.  

The Trump family occupies a central position in the project. Trump himself is listed on the project’s website as an "Honorary Member" and "Chief Cryptocurrency Advocate," while his sons Donald Trump Jr. and Eric Trump serve as "Web3 Ambassadors." DT Marks DEFI LLC, an entity associated with the president and his family members, holds a 38% stake in World Liberty Financial’s holding company and owns 22.5 billion WLFI tokens.  

The project’s technical team also boasts notable expertise, including senior figures such as Rich Teo (founder of stablecoin firm Paxos) and Corey Caplan (co-founder of the DeFi platform Dolomite).  

## How High is the Token’s Valuation?  

Market expectations for WLFI’s valuation are extremely high.  

In two token sales rounds in October 2024 and January 2025, WLFI was priced at $0.015 and $0.05 respectively, raising a total of $550 million. On decentralized platforms offering pre-listing trading (such as Whales Market), WLFI’s futures price has traded in the range of $0.20 to $0.30.  

According to Cryptonews, based on the current futures price, WLFI’s fully diluted valuation has exceeded $40 billion. DT Marks DEFI LLC, the Trump-linked entity, holds 22.5 billion WLFI tokens, of which the 15.75 billion tokens owned by Trump personally are estimated to be worth over $6 billion. This figure suggests that digital assets may have become a key component of Trump’s wealth structure.  

## What Makes the Project’s Design Unique?  

As previously noted by Wall Street Insights, WLFI’s substantial valuation is primarily built on its three-in-one design: "financial foundation, market game mechanics, and macro narrative."  

1. **Solid Financial Foundation**: According to analysis from the WeChat official account "Weisman Notes," USD1—the stablecoin within the WLFI ecosystem—is 100% backed by high-credit real-world assets (RWAs), with approximately 85% consisting of government money market funds. Its reserves are managed by BitGo, a U.S.-regulated custodian, and an independent assurance report is issued by the accounting firm Crowe LLP. WLFI only acts as a brand owner; this "separation of operations and branding" design significantly reduces systemic risks.  

2. **Unique Market Game Mechanics**: Reports indicate that ALT5 Sigma, a Nasdaq-listed company, has committed to purchasing up to $750 million worth of WLFI tokens. According to documents filed by ALT5 with the U.S. Securities and Exchange Commission (SEC), this purchase commitment "has no specific time or price restrictions." An analyst from The Block described it as a "strategic arsenal" for long-term goals, which can be used to stabilize prices during market volatility or deter short sellers.  

3. **Macro Narrative**: WLFI is seen as a model to demonstrate "U.S. compliant innovation" to global regulators. Against the backdrop of the U.S. pushing for cryptocurrency regulation and compliance, its identity deeply aligned with regulatory trends endows WLFI with a significant "regulatory certainty" premium.  

## Why Only Unlock 20% of Tokens?  

Under the unlocking rules, only early investors who purchased tokens in the pre-sale can unlock 20% of their holdings, while the shares of founders, team members, and advisors remain locked. This arrangement is viewed by the market as a well-crafted strategic design.  

Dylan Bane, an analyst at Messari, called this a "standard circulating supply management strategy." In an interview with Bloomberg, he stated, "By restricting early-stage liquidity, the project team can reduce short-term selling pressure, maintain price stability, and enhance market perception."  

However, some traders hold different views. Morten Christensen, a trader holding WLFI tokens, argued, "A low circulating supply makes it easier to drive up prices," describing it as "a great, explosive cocktail."  

Retail investors’ expectations are also divided. In a survey conducted in a WLFI holders’ community, some small-scale holders plan to sell when the price reaches 47 cents, while large-scale holders expect it to hit $1 or higher—some even joked that their goal is to buy a Lamborghini.  

## Who Are the Major Players?  

WLFI’s investor list brings together capital and industry influence.  

In addition to the Trump family’s entities holding massive amounts of tokens, according to information jointly disclosed by Accountable.US and Bloomberg, Justin Sun (founder of TRON) is one of the project’s largest independent investors. TRON DAO, which he controls, subscribed to 3 billion WLFI tokens for $30 million in November 2024, at a price of only $0.01—far lower than the market price at the time.  

Recently, Aqua1 Fund, a Web3-native fund, announced a strategic purchase of $100 million worth of WLFI. Its on-chain address holds 800 million tokens, surpassing Justin Sun to become one of the largest external token-holding addresses.  

Furthermore, DWF Labs, a market-making firm based in Abu Dhabi, also invested $25 million to purchase the token. Other notable investors include Mike Dudas, founder of 6th Man Ventures.  

## What Risks and Controversies Exist?  

Despite its sophisticated design, WLFI’s launch is accompanied by risks and ethical scrutiny.  

As pointed out by CryptoNews, the GENIUS Act—a bill signed by Trump earlier to regulate stablecoins—does not include provisions to prevent conflicts of interest. This has raised concerns about potential ethical issues behind the simultaneous launch of WLFI, in which his family is deeply involved.  

For investors, WLFI presents unique risk-return characteristics: its risk of systemic collapse is significantly reduced due to its solid RWA foundation, but market game risks and the risk of macro-policy shifts (on which its value highly depends) have become new focal points.  

The project’s long-term value depends not only on its own operations but also on unpredictable political and regulatory trends. With the official start of trading, the market will conduct its first comprehensive assessment of this composite financial innovation product.  

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