WLFI's first day on the market saw a roller coaster行情 again, with the correlated effect potentially causing the Meme coin TRUMP to rise tenfold to 80 dollars?

In less than a day since its debut, the governance token WLFI of World Liberty Financial (WLF), co-founded by the Trump family, has once again experienced a classic roller coaster market, with trading volume surging nearly tenfold during this period. To respond to this big dump, the community urgently proposed a governance proposal suggesting that 100% of all protocol fees on chains such as Ethereum and Solana be used for token buybacks and burns. While supporters believe this can enhance scarcity and improve long-term value, analysts warn that the effectiveness of this plan may be limited, considering the upcoming token unlock and the high implied valuation of WLFI. Meanwhile, the official listing of WLFI also seems to have triggered a surge in the price and trading volume of the Trump-themed meme coin TRUMP, which saw significant increases just before WLFI's launch.

WLFI launched on the first day with a big dump, the community urgently proposed a repurchase and burn plan

After its debut on Labor Day, the governance token WLFI of World Liberty Financial (WLF) experienced extreme fluctuations. According to data from CMC, the token price plummeted from an early high of $0.33 to around $0.21, before stabilizing at approximately $0.245. Meanwhile, its volume surged from about $259 million to $2.5 billion in just one day, nearly tenfold. WLFI is currently down about 14% from its launch price of $0.28, but there are still considerable gains for early whitelist buyers who purchased at around $0.015.

In the face of the severe market turbulence, the WLF community quickly proposed a governance proposal. This proposal aims to use 100% of the fees generated from all liquidity pools owned by the protocol on Ethereum and Solana to repurchase WLFI tokens on the open market and send them to a burn address, thereby permanently reducing the token supply. Proponents of the proposal believe that this mechanism will achieve a "direct supply reduction," effectively enhancing the "relative weight of long-term holders," and establish a positive feedback loop of "more usage = more fees = more WLFI burned."

Analysts Warn: Proposal Impact May Be Limited, Long-Term Outlook Remains Uncertain

Although the buyback and burn mechanism theoretically supports the token price, analysts remain cautious. Min Jung, a senior analyst at quantitative trading firm Presto, stated that given the high implied valuation of WLFI and the relatively low circulating supply, the overall impact of the proposal may be limited. He pointed out that the upcoming large-scale token unlock could offset the positive effects brought by the buyback, and due to the project's current lack of actual products to drive native demand, its long-term price stability remains uncertain. Jung also compared WLFI's approach to the shareholder return strategies of mature companies in traditional markets, rather than the profit reinvestment model of high-growth startups.

Ryan Yoon, a senior analyst at Tiger Research, also agrees that the buyback and burn mechanism "should theoretically support the value of the token by reducing supply." However, he also warns that WLFI currently lacks core operational services apart from providing basic liquidity, resulting in negligible fee generation.

Core members of the Trump family are involved, the core business of the project has not yet been launched

The vision of the WLF project is to become a decentralized lending service platform, although its core platform has not yet been officially launched. The project was co-founded by 9 co-founders, including the President of the United States, Donald Trump, his three sons, and the U.S. Middle East envoy Steven Witkoff. In July of this year, Trump revealed that he had received an unexpected income of $57.3 million from the project.

Although the core product is still under development, WLF has already launched a dollar-pegged stablecoin called USD1, which currently ranks sixth in the world by market capitalization.

WLFI Listing Linked Effect: TRUMP Volume Surge

The official listing of WLFI seems to have triggered a pump in TRUMP coin related to Trump. Data shows that in the 24 hours prior to the WLFI listing, the volume of TRUMP surged by 180%, and its price has risen by 3.1% in the past 5 days, leading the pack among similar tokens.

(Source: TradingView)

From a technical perspective, the TRUMP token has broken out of a descending wedge on the 4-hour chart, and its Relative Strength Index (RSI) has entered the overbought territory, which usually indicates strong buying pressure. Analysts believe that if the breakout of the key resistance level of 17.5 USD can be confirmed, the price of TRUMP may soar to 30 USD in the short term. More optimistic predictions suggest that due to the public's increased interest in all digital assets related to the Trump family, TRUMP's price could even reach 80 USD, achieving an astonishing rise of 1000%.

Conclusion

The drastic fluctuations of the WLFI Token on its first day of listing highlight the market's concerns about its high valuation and immature product. Although the community proposed a buyback and burn governance plan in an attempt to stabilize the situation, its long-term effectiveness still faces severe challenges from large-scale token unlocks and insufficient practical use cases for the project. Meanwhile, WLFI's high-profile debut has also brought significant ripple effects to the Trump-themed Meme coin, providing a new bullish catalyst for the price trend of TRUMP. This indicates that in the crypto market, political influence and community sentiment can sometimes surpass fundamentals, becoming important driving forces that affect token prices.