Trump-linked crypto firm WLF token drops 12% on first trading

World Liberty Financial’s cryptocurrency token, $WLFI, dropped 12% to $0.25 on its first day of public trading on September 1, according to CoinGecko data.

The token’s market capitalization stood just below US$7 billion, making it the 31st largest cryptocurrency in circulation.

Major exchanges such as Binance, OKX, and Bybit now list the token.

World Liberty Financial, launched last year by the Trump family and business partners, is a decentralized finance platform that also issues a stablecoin.

Early investors can sell up to 20% of their holdings, and $WLFI was made tradable after a July investor vote.

Reuters estimates the Trump family has earned about US$500 million from the project since its launch.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Celebrity crypto tokens follow a predictable boom-bust cycle despite initial market enthusiasm

World Liberty’s 12% first-day drop fits a well-documented pattern for celebrity-backed cryptocurrency projects.

Harvard research analyzing over 36,000 tweets from celebrity crypto influencers found that while these endorsements generate average first-day gains of 1.83%, investors face average losses of 19% after three months1.

This pattern has played out repeatedly with high-profile launches in 2025, including Kanye West’s YZY token, which briefly reached a $3 billion market cap before plummeting 70-80% within 24 hours due to centralized token control2.

Even Trump’s earlier TRUMP token, which initially hit a $14.5 billion market value in January 2025, demonstrates how celebrity branding can drive massive initial valuations that prove difficult to sustain3.

The consistent pattern suggests that celebrity association creates short-term speculative interest but often lacks the fundamental utility needed for long-term value retention.

2️⃣ Trump’s crypto venture launches amid the most favorable regulatory environment in US crypto history

World Liberty’s public trading debut occurs during an unprecedented shift in U.S. cryptocurrency policy that directly benefits such ventures.