WLFI Coin Fell 17% in Debut; Will Token’s Burn Strategy Help?

World Liberty Financial (WLFI) drops 19% after debut despite WLFI proposing a buyback-and-burn plan.

WLFI

Share this crypto insight on your favorite social media platform

Key Takeaways:

  1. The World Liberty Financial (WLFI) token debuted at $0.33 before falling to a range of $0.23, decreasing by 19% within 24 hours despite recording a trading volume of $1 billion within the first hour.
  2. The WLFI team proposed a plan to allocate 100% of its liquidity fees towards token buybacks and burns.
  3. Analyst identified significant trading levels, including support at $0.20-$0.24 and resistance at $0.29-$0.40.

The Decentralized Finance (DeFi) project World Liberty Financial (WLFI), backed by the Trump family, made its token debut on September 1st, 2025, with trading volume surpassing $1 billion during the first hour of trading.

According to the analyst from Bitunixthe token temporarily surged toward $0.40 before falling to the $0.20-$0.25 region, where it eventually stabilized.

Analysts see liquidity clustering between $0.29 and $0.32, with a secondary resistance zone around $0.36-$0.40. On the downside, clear support is seen in the $0.22-$0.24 range, with a stronger footing near $0.20.

Over the past 24 hours, the WLFI token has decreased by 19%. Recently, the WLFI team proposed a plan to direct all protocol-owned liquidity (POL) fees towards WLFI token buybacks and permanent burns, with the goal of reducing supply and aligning long-term holders.

WLFI collects liquidity fees by running its own trading pools on Ethereum, BSC, and Solana, and taking a portion of transaction fees whenever swaps take place. The fees earned through these liquidity pools will be used to purchase WLFI tokens from the open market and will be sent to a burn address, thereby eliminating them from circulation.

The WLFI mentioned four benefits to allocate 100% of POL fees towards token buybacks and permanent burns, which are-

  • Direct supply reduction: Every trade made for WLFI tokens generated trading fees, which will be allocated towards reducing the WLFI supply from the open market.
  • Alignment with long-term holders: Tokens of individuals who are not committed to WLFI’s long-term growth would decrease, hence raising the relative weight for committed long-term holders.
  • More usage equals more tokens burned: Higher trading activity leads to more tokens being permanently removed from circulation.
  • On-chain transparency: All transactions are recorded on-chain and reported to the community.

Market Reaction to WLFI’s Token

The WLFI token went from a high of $0.33 to $0.233 despite trading volume increasing tenfold to $2.5 billion, according to CoinGecko. Despite the proposal of token buybacks, it failed to lift the token to the level of its debut.

A Bitunix analyst told Times Crypto that WLFI’s launch highlights three significant risks: Holdings are highly concentrated, upcoming unlocks could distort valuation, and the project’s close political ties may invite regulatory and legal scrutiny.

The analyst further recommended that authorities and exchanges fight for increased transparency of lockups and holdings, as well as stronger anti-money laundering (AML) oversight.

Investors were advised to prioritize compliance and governance criteria when analyzing WLFI. “Institutions should closely track exchange liquidity, contract interactions, and legal developments,” the analyst continued, stressing that medium-term performance will be determined less by sentiment and more by how WLFI manages transparency and oversight, which investors and traders should focus on.

Disclaimer

All content provided on Times Crypto is for informational purposes only and does not constitute financial or trading advice. Trading and investing involve risk and may result in financial loss. We strongly recommend consulting a licensed financial advisor before making any investment decisions.