Opinion: WLFI could be one of the most worthwhile assets to trade in this cycle
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Opinion: WLFI could be one of the most worthwhile assets to trade in this cycle
This is not a brand gimmick; the Trump family has direct financial exposure to the agreement.
Navigating Web3 tides with focused insightsAuthor: hoeem
Translation: AididiaoJP, Foresight News
On September 1, World Liberty Financial (WLFI) will launch its governance token WLFI. For some, this is a complete reimagining of how stablecoins capture value.
For others, it's an almost unmasked Ponzi scheme that could trigger one of the most intense token bloodlettings in recent memory.
I don't agree with the governance token launch and fundraising dynamics, but honestly, the product itself is pretty cool—that’s why I’m currently going long on WLFI.
Project Overview
World Liberty Financial is built around USD1, a stablecoin claiming to be fully backed by cash and short-term U.S. Treasury bonds.
Governance lies with the WLFI token. Official documents directly link the Trump family to the project:
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Donald J. Trump is listed as honorary co-founder.
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Eric, Donald Jr., and Barron Trump are named as co-founders.
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DT Marks DEFI LLC, affiliated with the family, holds a large portion of WLFI tokens and has rights to a major share of protocol revenue.
This isn’t just branding: the Trump family has direct financial exposure to the protocol.
Why USD1 Isn't Just Another Stablecoin
Most stablecoins generate yield from reserves, which typically flows back into corporate balance sheets. For example, Circle’s USDC invests billions in Treasuries and channels interest to shareholders.
WLFI flips this model. Interest earned from USD1 reserves is used via smart contracts to buy and burn WLFI tokens on public markets.
The flow works like this:
Reserves → Protocol Revenue → WLFI Buyback and Burn → Holder Returns.
This means WLFI is designed not only as a governance token but also as a deflationary asset tied to real-world cash flows.
Token Distribution
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Date: September 1, 2025
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Exchanges: Binance, Bybit, OKX, Gate, etc.
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Unlock: 20% of presale tokens tradable at launch, remainder locked
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Supply: 5% circulating supply
Futures markets are already trading WLFI at around $0.26. Once spot trading begins, these presale markets will seamlessly convert into standard perpetual contracts, preserving price history.
Next, I’ll explain why this could be one of the most compelling trade opportunities in this cycle.
Investors and Partners
Major players have already entered:
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DWF Labs bought in at $0.10.
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Aqua One Fund invested $100 million at approximately $0.125.
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NASDAQ-listed ALT5 Sigma committed $1.5 billion at $0.20 for 7.5% of the supply.
Even more striking: ALT5 reportedly received approval for $750 million to purchase WLFI.
Do you think they’ll let it fall below a $20 billion FDV?
Now consider liquidity: only about 5% of the total supply will be circulating at launch. At a $20 billion valuation, that’s roughly $1 billion in tradable tokens. With $750 million in reserves, insiders could theoretically absorb nearly all circulating supply.
This creates a reflexive feedback loop: buying pressure drives up the token price, increasing the value of insiders’ locked allocations, thereby strengthening the balance sheet available to support the market.
One skeptic put it bluntly: "It’s a walking, talking shitcoin with elite-level Ponzi economics, sponsored by the president and his family."
Why This Structure Is Set Up to Explode
Three factors:
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Scarce Circulation: With such low float, even modest demand can cause massive price swings.
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Embedded Buying Pressure: Every dollar of profit from stablecoin reserves may translate into systematic WLFI purchases.
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Narrative Fuel: This isn’t just a meme coin riding Twitter hype. It has political branding, institutional backing, and Treasury support.
The value of WLFI held by ALTS doesn’t come from passive price anchoring or merely from on-chain staking yields. Its core value stems from real-world cash flows generated by USD1, the flagship stablecoin at the heart of the ecosystem.
If Trump’s meme coin—with no utility and minimal promotion—reached nearly an $80 billion FDV, what might happen to WLFI, which has both mechanism and capital behind it?
This setup appears engineered for dramatic upside.
Risks No One Should Ignore
In the long run, FDV matters.
But this isn’t a long-term bet.
You’re betting on low float, strong presidential promotion, treasury entities eager to pump the price so their 20% unlocked tokens turn a profit—and retirement funds tied to their token unlock schedule.
Side Bets
Two smaller projects are tied to the WLFI launch:
Blockstreet (BLOCK): Hailed as the launch platform for USD1’s cross-chain rollout. Its founder now serves as CIO of ALT5 Sigma, directly linking it to WLFI treasury operations.
Dolomite (DOLO): A lending platform whose co-founder is now WLFI’s Chief Technology Officer (CTO). Could see deeper integration, possibly becoming a DeFi provider for USD1.
Smaller market caps mean more upside potential—but higher risk.
Both are higher-beta plays: they could swing more violently in either direction based on WLFI’s trajectory.
Summary
WLFI is many things at once:
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A stablecoin model where yields buy back a governance token backed by U.S. government assets.
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A political experiment combining DeFi with brand power.
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A reflexive financial structure likely to reach absurd valuations, enabling investors to extract massive profits during future unlock periods (though that doesn’t mean you can’t make money at launch).
The setup is undeniable: extremely low float (5%), massive treasury capital, and a design that converts real-world earnings into persistent buying pressure on the token itself.
Whether you see it as innovation or state-backed Ponzi, this token launches with only 5% of supply circulating—conditions for a massive pump are clearly in place.
Afterward, the products offered by WLF are actually cool; it's just that the long-term outlook for the token itself looks bleak due to inflated FDV. But remember, market cap at launch matters more than FDV—FDV only matters over time. I believe they'll gradually sell into the market over time, but they want the highest possible FDV to make that feasible—especially since ALT5 entered at $0.20 ($20B FDV), not far from current prices. In fact, you’ve been able to trade at that level over the past 48 hours on platforms like Hyperliquid. This could be one of the most compelling trade opportunities in this cycle.
My argument is simple.
This will be a liquidity suction event similar to TRUMP, after which market conditions turned bearish.
So my plan is to exit during this launch, hold mostly cash through September, and look for an entry point sometime before what I expect to be a Q4 climax.
The same people who saw TRUMP launch, hit $20B FDV, and then shorted it as it rose toward $80B FDV will do the same here—only this time, WLFI has actual utility, lower float, and stronger backing.
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