WLFI Launch Triggers Volume Drop in $TRUMP Memecoin

The World Liberty Financial token (WLFI) is finally here. After being kept from public trading for a while, the new Trump-backed altcoin entered the market earlier this week, causing a surge in interest and criticisms alike. 

The coin launched on September 1st at an opening price of $0.28 and an astounding market capitalization of $5.63 billion during its debut. Based on pre-launch pricing, $WLFI entered the market with a fully diluted valuation of around $26 billion, making it one of the most valuable projects in crypto from the get-go. 

With that said, after its debut, it is safe to assume that WLFI has had a rocky start since going public. After reaching a high of $0.32 (according to CoinMarketCap), a couple of hours after launching, the token has since retracted to even below its opening price, and is currently trading at $0.2212.

Its market capitalization almost reached the mark of $8 billion on September 1st. Since then, the cumulative value of WLFI tokens has also retracted to below the opening date, currently at around $5.4 billion. 

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Tokenomics Concerns and Early Criticism

The project was the target of criticism for holding a private presale, for its notorious ambiguity regarding its tokenomics during its first days, and for making non-CEX tokens “non-transferable” at first, meaning that whoever bought the token directly on the blockchain was unable to move, sell, or trade their holdings.

Despite the hype, only 4.24% of the 20 billion WLFI tokens offered during public sale were actually sold. With a total supply of 100 billion, the fact that the launch did not generate as much interest as anticipated raises valid concerns about inflationary pressures on its ecosystem. 

World Liberty Financial tackled this issue today, performing a 48 million token burn of WLFI coins, worth around $11,000,000.

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WLFI’s Market Impact on $TRUMP

As WLFI tries to readjust its position in the market, it's interesting to see that its arrival may have affected the other major “presidential” cryptocurrency. The Trump memecoin token $TRUMP has had a rough go over the past couple of days, including a significant decline in trading volume. 

Trading volume for $TRUMP on centralized exchanges is averaging a 70% drop in the previous 24 hours, while $WLFI continues to pick up volume despite the market pushback.  WLFI’s launch may have triggered a sharp volume drop in $TRUMP, but as of the last 24 hours, we are probably not talking about favorable buying volume. The WLFI token is down by another 2.4% over the last day, signaling that the initial surge in attention may have been driven more by speculative churn than sustained investor confidence.

Given the similarities of the two projects, mostly because of how President Trump is indirectly affiliated with both of them, one possible explanation points to WLFI’s massive debut could have cannibalized a portion of $TRUMP’s trading volume.

While the memecoin did go through a small surge in volume and even value on the day of the launch, the $TRUMP token appears to be back to where it was before September 1st, while WLFI continues to trend. As a total, the presidential memecoin is trading at $8.41—significantly down from its yearly high of $45.47.

Alongside market moves, some exchanges are adding rewards. BloFin is currently running an ETH rewards campaign where traders can earn up to $2,000 just by depositing and trading.