WLFI token (World Liberty Financial), linked to the Trump family, made headlines for all the wrong reasons. With a drastic 50% value drop, the project swiftly initiated a token buyback and burn plan to restore stability.
The token WLFI has experienced a spectacular downfall, losing 58% of its value in a short time, and 41% in September alone. This plunge triggered a swift reaction from World Liberty Financial, the DeFi project linked to Trump. To counter the market collapse, WLFI holders approved a token buyback and burn plan. The goal is to reduce the circulating supply and stabilize the token’s value.
According to the project’s latest governance updates, 100% of the WLFI treasury’s liquidity fees will be immediately used to buy back tokens, which will then be destroyed (burned). This strategy represents a classic attempt in the crypto space to create deflationary pressure and support the price. Listing on Robinhood was also mentioned as a potential price support factor, although traders are still debating the impact of presale distributions.
The main appeal of the WLFI token lies in its connection to Donald Trump and his family. According to the Wall Street Journal, the Trump family has amassed a fortune of $5 billion following the launch of this cryptocurrency, and allegedly holds more than 20% of WLFI tokens. This association has generated considerable interest but also criticism, with some labeling the project as “casino-like.”
The fundamentals of such a token are often tied to the celebrity backing it and speculation around their influence. However, the sustainability of a crypto project also depends on its actual utility, underlying technology, and community. World Liberty Financial positions itself as a DeFi project, but the recent price drop suggests that mere association with a famous name is not enough to guarantee long-term stability or growth.
Technical analysis of WLFI is complex due to its volatility and early-stage nature. The 58% drop indicates strong selling pressure and a short-term loss of confidence. The token buyback and burn plan is an attempt to create artificial support, but its long-term effectiveness remains to be proven. Support and resistance levels will need to be reassessed after the complete implementation of this plan.
Currently, the token is in a price discovery phase following a major correction. Traders should closely monitor transaction volumes and the real impact of the buyback program. Stabilization above certain psychological thresholds, such as the $0.50 or $1 level, could indicate the beginning of a recovery, but caution is warranted. The lack of significant historical data and the speculative nature of the token make any technical prediction challenging.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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