jakiro
Author: Hoeem, Encrypted KOL; Translation: Bitchain Vision xiaozou
A stablecoin supported by US Treasury bonds, a governance token nourished by its own reserves, and behind it is the US presidential family!Also, its initial circulation volume is only 5%.
On September 1, World Liberty Financial will release its governance token WLFI.For some, this is a complete restructuring of the stablecoin value capture model.
For others, this is nothing more than an almost naked Ponzi scheme, aiming to create the most violent token short squeeze in recent times.
No, seriously, this product will be great – although I have reservations about its governance tokens and startup mechanisms, this is precisely why I am heavily in the market for going long at this moment.
1. Project analysis
At the heart of World Liberty Financial is the USD1 stablecoin, which claims to be fully supported by cash and short-term Treasury bonds.
The governance layer is composed of WLFI.Official documents directly related to the Trump family:
Donald J. Trump is listed as honorary co-founder.
Eric, Donald Jr. and Barron Trump are all listed as co-founders.
DT Marks DEFI LLC, a company associated with the family, holds a large share of WLFI tokens and is entitled to a major share of the agreement’s proceeds.
This is not a brand gimmick: The Trump family has a direct financial connection to the agreement.
2. Why is USD1 not an ordinary stablecoin?
Most stablecoins generate returns through reserves, which are often reflowed to the business balance sheet.For example, Circle’s USDC put billions of dollars into Treasury bonds and transfers interest to shareholders.
WLFI has subverted this model.The interest generated by the USD1 reserve fund is automatically used by smart contracts to repurchase and destroy WLFI in the open market.
The flow of funds is as follows:
Reserve → Agreement Revenue → WLFI Repurchase and Destruction → Increased Income from Coin Holders
This means that WLFI is not only designed as a governance token, but also a deflationary asset that is pegged to real-world cash flow.
3. Post an event
Date: September 1, 2025
Exchanges: Binance, Bybit, OKX, Gate, etc.
Unlocking rules: 20% of the pre-sale tokens can be traded at startup, and the rest of the positions are locked.
Supply: 5% circulating supply
The current quote in the futures market: the WLFI futures price is about US$0.295.After spot trading starts, these pre-listed markets will be directly converted into standard perpetual contracts, and historical price data will be retained in full.
These factors (plus the one I will elaborate on) are exactly why they may become the most promising trading target of this cycle… Let’s wait and see.
4. Institutional participants and their financial strength
The main institutions have long been laid out:
DWF Labs is purchased for $0.10.
The Aqua One fund invested $100 million at about $0.125.
Nasdaq-listed ALT5 Sigma spent $1.5 billion to subscribe for 7.5% of the total supply for $0.20.
What’s even more amazing is that it is rumored that ALT5 has been approved for US$750 million for the special acquisition of WLFI.
So, do you think they will let their market value fall below 20 billion?Come on… Maybe you can kill the bulls first and then rise all the way?
Now let’s look at the circulation: only about 5% of the supply entered circulation at the first launch.At a valuation of US$20 billion, the tradable tokens are worth approximately US$1 billion.Insiders with $750 million in capital can theoretically absorb all circulating markets – all circulating markets!
This will form a reflexive feedback loop: buying pressure pushes up the price of tokens → value-added by insiders’ locked shares → Strengthen the balance sheet used to support the market.
I saw skeptics say bluntly: “This is a walking junk coin, an elite Ponzi economics endorsed by the president’s family.” (Not my opinion)
5. Why is this structure prone to surge
Three factors are integrated:
Scarce circulation: Extremely thin supply means that even mild demand can trigger severe price fluctuations.
Built-in buying pressure: every $1 in profit generated by stablecoin reserves will be converted into a systematic WLFI acquisition.
Narrative driving: This is not just the meme coins that are popular on Twitter.It has political brand endorsement, institutional support and national debt association attributes.
Trump meme coin has neither practical functions nor promotion, but can still reach a valuation of nearly US$80 billion. So what kind of miracles will WLFI, which has both mechanism design and financial support, create?
The entire structure seems to be born to create a surge in the market.
6. Risks that cannot be ignored
Complete dilution valuation (FDV) is crucial in the long run.
This is not a long-term investment.
What you bet on: low circulation, strong promotion from the U.S. president, and the need for Treasury institutions to raise prices in order to recover costs and earn more profits on 20% unlocked tokens and retirement funds by the token unlock plan.
7. Quick view of peripheral betting
Two small projects are focusing on WLFI releases:
Blockstreet (BLOCK): Touted as the launch platform for USD1 cross-chain issuance.Its founder has served as Chief Investment Officer of ALT5 Sigma, directly binding it to WLFI’s Treasury strategy.
Dolomite (DOLO): A lending platform whose co-founder is currently WLF chief technology officer.Deeper integration may occur, such as becoming a DeFi service provider for USD1.
Both are high beta investment targets: their prices are likely to fluctuate more severely in both directions based on the fortune of WLFI.
8. Core Conclusion
WLFI has multiple attributes at the same time:
A stablecoin model——The governance of its income repurchase is endorsed by the US government.
A political experiment that combines DeFi with brand influence.
A reflexive financial structure, likely to reach amazing valuations, allowing investors to make huge profits through unlocking plans (but that doesn’t mean you can’t make substantial profits when starting)
It is undeniable that its architectural design: extremely thin circulation (5%), huge treasury capital, and the mechanism for the continuous buying pressure of converting real-world returns into tokens themselves.
Whether you see it as an innovation or a state-backed Ponzi scheme, the setting of the token issuance at just 5% of the circulating supply has paved the way for a crazy surge.
It is undeniable that the products offered by WLF are actually cool – it’s just that the future prospects of the token itself are worrying because its Fully Dilution Valuation (FDV) is overvalued.But please note: Market value (mcap) at the time of issuance is more important than FDV, which is more critical in the long run.In other words, I think they will sell and cash out gradually, but they need to push up FDV as much as possible to achieve their goals – especially when the entry price of ALT5’s $0.20 (20 billion FDV) is almost the same as the current price.In fact, if you could buy at this price on Hyperliquid and other platforms two days ago, it might be the most promising trading target in this cycle.
My point of view is clear:
This will be a TRUMP-like liquid siphon event.
The market has shown signs of weakness after TRUMP.Besides, September is already weak in season – so my plan is to sell off at this release, hold mainly cash in September and look for entry before what I think is the final finale of the fourth quarter.
This may be the situation that creates the king.
The same group of people who witnessed the TRUMP’s 20 billion FDV at the time of its issuance and then exited when it hit 80 billion FDV, will also adopt the same strategy this time.But the difference is that WLFI has practical functions, smaller circulation and more endorsements.
This is my plan, please do your own thing.
