Launched on September 1st, why is WLFI worth buying?

Launch on September 1st: Why is WLFI worth the bullish outlook?

Author: Hoeem, Crypto KOL; Translation: Golden Finance xiaozou

A stablecoin backed by US Treasuries, a governance token fueled by its own reserves, and backed by the US presidential family! And, its initial circulation is only 5%.

On September 1st, World Liberty Financial will launch its governance token, WLFI. For some, this represents a radical reimagining of the stablecoin value capture model.

For others, it's a nearly blatant Ponzi scheme designed to trigger the most violent token short squeeze in recent memory. No, seriously, this product is going to be fantastic—although I have reservations about its governance token and launch mechanism, that's precisely why I'm heavily long right now. 1. Project Analysis World Liberty Financial's core is the USD1 stablecoin, claimed to be fully backed by cash and short-term Treasury bills. Governance is comprised of WLFI. Official documents directly link the Trump family: Donald J. Trump is listed as an honorary co-founder. Eric, Donald Jr., and Barron Trump are all listed as co-founders. DT Marks DEFI LLC, a company affiliated with the family, holds a significant portion of WLFI tokens and is entitled to a significant share of the protocol's revenue. This isn't just a branding gimmick: The Trump family has a direct financial connection to the agreement. WLFI disrupts this model. The interest generated by the USD1 reserve is automatically used to repurchase and destroy WLFI on the open market through a smart contract.

The flow of funds is as follows:

Reserve → Protocol Income → WLFI Repurchase and Destruction → Increased Returns for Token Holders

This means that WLFI is not only designed as a governance token, but also a deflationary asset linked to real-world cash flows.

3. Issuance Dynamics

Date: September 1, 2025

Exchanges: Binance, Bybit, OKX, Gate, etc.

Unlocking rules: 20% of the pre-sale tokens can be traded at launch, and the rest are locked. Supply: 5% of circulating supply. Current futures market quote: WLFI futures price is approximately $0.295. Once spot trading launches, these pre-listed markets will be directly converted to standard perpetual contracts, with full historical price data preserved. These factors (plus those I'll discuss shortly) make it potentially the most promising trading target of this cycle... let's wait and see. 4. Institutional Participants and Their Financial Strength. Major institutions have already invested: DWF Labs purchased at $0.10. Aqua One Fund invested $100 million at approximately $0.125. NASDAQ-listed ALT5 Sigma spent $1.5 billion to buy 7.5% of the total supply at $0.20. Even more astonishing: ALT5 has reportedly received $750 million in approvals for the WLFI acquisition. So, do you think they'll let the market cap fall below $20 billion? Come on... maybe they'll just kill the longs first and then push it back up? Now let's look at the circulating supply: only about 5% of the initial supply entered circulation. At a $20 billion valuation, that translates to about $1 billion worth of tradable tokens. Insiders with $750 million could theoretically buy up nearly all of the circulating supply—all of it! This creates a reflexive feedback loop: buying pressure drives up the token price → insiders' locked-up shares increase in value → strengthening the balance sheet used to support the market. I've seen skeptics bluntly declare, "This is a walking shitcoin, an elite Ponzi scheme backed by the presidential family." (This isn't my opinion.) 5. Why is this structure prone to price surges? Three factors converge: Scarce circulating supply: Extremely thin supply means even modest demand can trigger significant price fluctuations. Built-in buying pressure: Every dollar of revenue generated by the stablecoin's reserves translates into systemic WLFI acquisitions. Narrative drive: This isn't just a meme coin riding on Twitter. It has political brand endorsement, institutional backing, and links to government bonds.

Trump meme coin has neither practical functions nor lacks promotion but can still reach a valuation of nearly 80 billion US dollars. Then what kind of miracle will WLFI, which has both mechanism design and financial support, create? The entire structure seems designed to create a surge. ... 7. Overview of Nearby Bets: Two small projects are developing around the WLFI issuance: Blockstreet (BLOCK): Touted as the launchpad for USD1's cross-chain issuance. Its founder has become Chief Investment Officer of ALT5 Sigma, directly tying it to WLFI's Treasury bond strategy. Dolomite (DOLO): A lending platform whose co-founder is currently the Chief Technology Officer of WLFI. Deeper integration is possible, such as becoming a DeFi service provider for USD1. Both are high-beta investments: their prices are likely to experience more dramatic two-way fluctuations depending on the fortunes of WLFI.

8. Core conclusion

WLFI has multiple attributes at the same time:

The same group of people who saw Trump's FDV reach 20 billion and then exited when it reached 80 billion FDV will adopt the same strategy this time. But the difference is that WLFI has actual functions, a smaller circulation, and more endorsements.

This is my plan, please feel free to do as you please.