World Liberty Financial (CRYPTO: WLFI), a DeFi venture linked to President Donald Trump's family, is set to debut its governance token WLFI.
What Happened: World Liberty Financial is set to launch its token on Sep. 1, alongside its stablecoin USD1, which claims to be fully backed by cash and short-term U.S. Treasuries.
In a detailed X post, pseudonymous trader Hoeem noted that unlike other stablecoins where interest income benefits corporate shareholders, USD1's yield is funneled via smart contracts into systematically buying and burning WLFI, making the token both governance-based and deflationary.
Adding to the intrigue, the Trump family is directly tied to the project, with Donald J. Trump listed as co-Founder Emeritus and his sons holding major allocations through DT Marks DEFI LLC, giving them real financial exposure.
Also Read: Trump-Related DeFi Platform World Liberty Financial Debuts WLFI Token On Ethereum Mainnet
What's Next: Trader Hoeem argued that despite WLFI's "Ponzi-like" dynamics, the tokenomics could drive a powerful launch.
Only 5% of supply will circulate initially, with institutions like DWF Labs, Aqua One Fund, and Nasdaq-listed ALT5 Sigma already invested at lower entry prices and reportedly armed with billions in dry powder to support the market.
This creates a reflexive loop of scarcity, buy pressure, and insider firepower, priming WLFI for a “violent pump” despite skepticism over its dynamics.
While critics warn its fully diluted valuation (FDV) is inflated and that insiders will eventually dump vested tokens, the short-term setup favors a liquidity squeeze reminiscent of TRUMP‘s (CRYPTO: TRUMP) explosive run.
Side projects like Blockstreet and Dolomite could also benefit as higher-beta plays linked to WLFI's ecosystem. In short, WLFI is a political-meets-financial experiment that blends stablecoin yield capture, brand power, and engineered scarcity.
What's Next: Hoeem advised traders to ride the launch pump, avoid overexposure long term, and watch for another liquidity-driven cycle peak later in Q4.
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