Trump’s WLFI Token Wipes Out $2 Billion Hours After Launch

World Liberty Financial (WLFI), the cryptocurrency promoted by the Trump family, entered the market this week with extraordinary fanfare and an initial valuation of nearly $9.4 billion. Within hours, however, over $2 billion in value disappeared, fueling skepticism that this latest project may follow the same path as other Trump-backed tokens that have collapsed in recent months.

The token launched on Binance and several other exchanges at approximately $0.33, but quickly dropped to $0.24 by evening trading. The decline was largely driven by early presale investors, many of whom transferred tens of millions of dollars’ worth of WLFI to Binance the moment their allocations unlocked. With a total supply of 100 billion tokens, the project’s fully diluted valuation initially suggested a potential $30 billion ecosystem, yet market behavior exposed deep fragility from the start.

On-chain data revealed that wallets holding between $15 million and $20 million each began offloading tokens immediately. Only 20 percent of presale allocations are currently tradable, while the remainder remains locked under vesting schedules, but the early selling pressure was enough to send prices sharply lower. This fueled comparisons to TRUMP and MELANIA tokens, both of which have lost more than 90 percent of their value since January.

Adding to investor concerns, more than 60 percent of WLFI’s total supply is concentrated in fewer than ten wallets, most of them tied to Gnosis Safe multi-signature accounts. Such concentration leaves very little circulating supply available for retail traders, magnifying volatility and undermining trust in the token’s stability. At the same time, speculative bets on derivatives platforms have surged. On Hyperliquid, one trader placed a $6.8 million long position while another wagered $1.3 million on a short, underscoring the high-risk appetite surrounding WLFI’s market debut.

The Trump family has promoted WLFI as part of its World Liberty Financial brand, calling it a project for so-called “patriot investors.” Critics, however, argue that its appeal rests more on political branding than on technological or financial innovation. Reports suggest that the family’s holdings are currently valued at more than $6 billion, with Donald Trump himself controlling nearly two-thirds of the supply. Even a modest amount of selling from those wallets could destabilize the token further, a risk highlighted by the swift collapse of previous Trump-linked tokens.

With a fully diluted valuation still hovering around $25 billion, WLFI entered the market as one of the most ambitious token launches of 2025. Yet its volatile first hours raise doubts about whether a cryptocurrency so closely tied to political branding can sustain long-term value. For now, WLFI’s dramatic debut serves as a reminder of how insider control, speculative trading, and concentrated ownership can undermine even the most heavily publicized token launches.