The WLFI token launch faced immediate challenges when users reported wallet breaches during the first hours of trading. A recent Ethereum network upgrade created a vulnerability that automated bots exploited, draining newly acquired WLFI tokens from some holders.
The incident drew attention to the security infrastructure of World Liberty Financial, the entity behind the token, and highlighted risks tied to high-profile launches. Investigators are assessing whether the vulnerability stemmed from the WLFI protocol itself or from external factors linked to Ethereum’s upgrade. The company has not confirmed the total amount lost but acknowledged the breach and said mitigation steps are underway.
Token Burn and Buyback Plans
World Liberty Financial moved to reshape WLFI’s supply dynamics by burning 47 million tokens, representing nearly 0.19% of the total circulation. Executives said the burn was designed to reduce available supply and reward long-term holders.
At the same time, the company announced plans to launch a structured buyback-and-burn program funded by protocol-owned liquidity fees. Under this framework, fees generated by WLFI activity would flow into a pool used to purchase tokens on the open market, which would then be permanently removed from circulation. Officials added that community governance would oversee the scheme, with voting expected to decide its final form.
Governance Unlock and Investor Control
WLFI began as a non-transferable governance token before community members voted in July to enable trading. That decision triggered the release of about 20% to 25% of tokens held by early investors, while the rest of their allocations remain time-locked.
Despite the unlock, World Liberty Financial stated that no individual wallet can control more than 5% of governance power, a measure aimed at preventing outsized influence. However, analysts note that concentrated holdings by major investors still leave questions about decentralization and long-term governance. The ongoing shift from a restricted governance model to a tradeable token adds another layer of complexity for both regulators and market participants.
High-Profile Backers and Political Links
The WLFI ecosystem has attracted major investors, including industry figure Justin Sun, who holds a significant stake and serves as an advisor. His involvement has brought both visibility and scrutiny, given his previous regulatory controversies. In addition, entities tied to the Abu Dhabi government have committed capital, particularly around World Liberty Financial’s stablecoin project, USD1. The presence of foreign sovereign investors underscores the geopolitical dimensions of the Trump family’s crypto ventures.
At the same time, WLFI continues to draw attention for its overlap with U.S. political power. Critics argue that the Trump family’s direct participation in token governance and related projects creates potential conflicts of interest. Recent policy decisions, including the Genius Act that streamlines stablecoin issuance, are seen as benefiting the family’s ventures. The intersection of private token projects with public policy adds weight to ongoing debates about ethics, transparency, and the use of political office to shape crypto markets.
WLFI Price Consolidates After Volatile Debut
The WLFI/USD 30-minute chart shows extreme volatility following its launch, with price spiking briefly toward $0.50 before a rapid correction dragged it below $0.25. That initial surge and decline highlight speculative trading and low liquidity during the token’s debut. Since then, WLFI has entered a consolidation phase, moving sideways between $0.22 and $0.23 with weakening momentum.
The 50-period exponential moving average (EMA) now acts as resistance, currently positioned near $0.2269. Price has struggled to break above this level, showing that short-term sentiment remains cautious. At the same time, trading volume has declined significantly compared with the launch peak, indicating reduced speculative pressure. Lower volume often signals that the market is waiting for a new catalyst before taking a clear direction.
The relative strength index (RSI) sits around 43, suggesting the token is neither oversold nor overbought. This neutral reading, combined with compressed price action, points to a consolidation zone where traders reassess positioning after the volatile start. If WLFI holds support at $0.22 and gathers enough demand, a move above the 50 EMA could open the way back toward $0.27. However, failure to maintain the $0.22 floor could invite further declines toward $0.20 or lower, especially if volume remains thin.
Overall, WLFI’s price action reflects the challenges of early trading, where speculative spikes quickly fade into consolidation. The next decisive move will depend on whether buying interest returns to push price above the EMA barrier or whether continued weakness results in another leg down.
WLFI MACD Signals Weak Momentum
The WLFI/USDT MACD chart shows that momentum has shifted after the token’s volatile launch. The blue MACD line has crossed below the orange signal line, creating a bearish crossover. At the same time, histogram bars have turned red and remain below the zero line, confirming fading bullish momentum. These readings indicate that sellers are in control in the short term, with buying pressure unable to sustain early spikes.
The histogram also shows decreasing volatility as bars contract, suggesting the token is consolidating rather than trending strongly. This aligns with WLFI’s sideways movement near $0.22 on the price chart. Unless the MACD line reclaims the signal line with green histogram expansion, momentum is likely to stay weak. Traders are watching whether support holds near current levels, because continued negative MACD readings could pressure WLFI to test lower price zones.
