WLFI token price tanks, price down 55% as whales dump millions
Shortly after the launch of Trump’s WLFI token, major holders started selling their positions.
- Trump-linked WLFI crashed 55% shortly after the start of public trading
- Only 24% of the total token’s supply is unlocked
- The Trump family and insiders are major holders of the WLFI token
World Liberty Financial (WLFI) token, backed by the Trump’s family venture, has made its debut in public trading. Launched with a $34 billion fully diluted valuation, the token briefly entered the top 10 most valuable crypto assets. However, soon after, its price plummeted, as insiders started selling.
According to Reuters, WLFI opened around $0.31 per token, before reaching a high of $0.40. However, within hours, the token dropped to $0.26, 55% down from its high since it started trading. The likely culprit was insider selling.
On-chain data shows several major holders transferred millions of WLFI tokens to exchanges. One wallet alone moved 53 million WLFI to a Binance deposit address, a move that typically signals intent to sell.
The Trump family holds the majority of WLFI tokens
Most WLFI tokens are concentrated in the hands of Trump’s family and insiders. The Wall Street Journal reported that WLFI’s newly acquired affiliate Alt5 raised $750 million from outside investors, which it used to purchase WLFI tokens before launch. The sale is expected to net the Trump family about $500 million in profits.
Such circular transactions often raise concerns in traditional finance, though they are common in crypto. According to the WSJ, public filings show Donald Trump personally holds two-thirds of WLFI tokens. At current prices, these holdings are valued at more than $17 billion.
Still, about 75% of the token supply remains locked, and Trump will likely be unable to liquidate such a large portion at current prices. Nevertheless, this concentration of ownership exposes investors to significant risks from insider selling.
