Some traders have raised concerns about possible insider activity and price manipulation
The Trump family-backed World Liberty Financial (WLFI) token has experienced a rollercoaster debut on major cryptocurrency exchanges. After months of anticipation, the token launched with substantial trading volume but quickly faced price volatility.
WLFI opened trading at approximately $0.30 and quickly rose to $0.40, creating a brief surge of excitement among investors and traders. However, the celebration was short-lived.
The token soon experienced a sharp decline, falling to as low as $0.213, marking a 46% drop from its peak. The price has since stabilized around the $0.234 mark.
Despite the price drop, WLFI recorded an impressive $4.46 billion in trading volume within its first 24 hours of trading. This massive volume reflects the high level of interest surrounding the project.
The token’s market capitalization currently stands at approximately $5.72 billion, positioning it as the 26th largest cryptocurrency by market value according to Coinmarketcap rankings.
In response to the price decline, World Liberty Financial has introduced a buy-back burn program proposal. This strategic move aims to reduce the circulating supply of WLFI tokens and potentially boost their long-term value.
The proposed plan would utilize fees collected from the project’s Ethereum, BNB Chain, and Solana liquidity pools to finance a series of token buybacks. After purchase, these tokens would be burned, permanently removing them from circulation.
Project leaders have stated that this mechanism would give long-term holders a larger share of ownership and directly tie the token’s scarcity to platform usage. The proposal comes as a direct response to the price drop following the launch.
On-chain data revealed that some early investors moved to take profits shortly after the launch. One notable wallet transferred 53 million WLFI tokens to a Binance deposit address, clearly indicating an intention to sell.
It’s worth noting that presale investors are only permitted to sell 20% of their holdings at this time, a restriction designed to prevent excessive selling pressure. Some market observers have expressed concerns that future unlocking periods could create additional downward price pressure.
Short sellers also made their presence felt in the market. One trader reportedly moved $3 million in USDC to Hyperliquid specifically to short WLFI, betting that the price would fall.
Technical analysis shows WLFI consolidating in the $0.20-$0.25 range after its decline from the all-time high. The token faces resistance around $0.25, having been rejected at this level twice already.
Support levels have formed at $0.22 and $0.20, which traders are watching closely for potential breakout or breakdown signals.
Some users on social media platform X have raised concerns about possible insider activity and price manipulation. One user claimed to have detected insider trading patterns, citing wallet activity that suggested certain holders may have sold tokens before the broader market downturn.
Critics have directed comments toward Eric Trump, who has been publicly associated with World Liberty Financial. Some commenters accused him of promoting a project that quickly lost value after launch.
The World Liberty Financial project launched in 2024 and held token presales in October 2024 and January 2025, raising a total of $550 million. Presale tokens were priced at approximately $0.15 each, giving early backers a potential profit of over 100% at the launch price.
Currently, about 25% of the total WLFI supply is in circulation, with a fully diluted value of approximately $30 billion.
After the release of the token burn proposal, some high-profile figures have expressed renewed confidence in WLFI. Influencer Andrew Tate, who had an earlier long position on WLFI liquidated for $67,500, quickly doubled down by opening another long position, signaling his belief that the token’s price could rise.
The WLFI token launch represents one of the year’s most-watched cryptocurrency debuts, with market participants closely monitoring its price action and development.
