Trump’s World Liberty Token Tanks on Debut as 77 Firms Vie for Hong Kong Stablecoin Licenses
Political tokens face reality check as regulatory frameworks gain traction.
The Harsh Awakening
Trump's World Liberty Token—the much-hyped digital asset tied to political fervor—crashed spectacularly at launch. Meanwhile, 77 established financial firms scramble for Hong Kong's new stablecoin licenses, signaling where institutional confidence truly lies.
Numbers Don't Lie
Seventy-seven serious players—not meme coin speculators—are diving into regulated stablecoins. They're chasing legitimacy while political tokens flounder. Hong Kong's licensing rush proves compliance beats hype every time.
The Real Game
Forget partisan gambles—smart money follows stability. While some chase celebrity endorsements, institutions build foundations. Another reminder that in crypto, fundamentals eventually trump fanfare.
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Learn moreA crypto token backed by the Trump family flopped on debut on Monday, with the World Liberty Financial ($WLFI) token falling significantly. The token was originally designed for voting on ideas to improve the protocol in the project endorsed by President Trump and his family.
When the WLFI tokens were first offered, they couldn't be traded. Rather, they gave holders the power to modify the company's core code and other critical components. According to initial backers, the major reason they wanted to invest in $WLFI was the TRUMP connection and the hope that the tokens would be worth more now that he was on board.
A vote in July allowed the token to be traded, giving investors their first chance on Monday, despite it being a market holiday for Labor Day. Trading enabled investors to determine token value, sparking speculation, exchange fees, and wider attention from crypto investors. While early investors were allowed to sell 20% of their holdings, the rest were not tradable.
Despite a limited supply, the tokens listed at 30 cents did not grab investor attention as expected before the debut, when there was a notable increase in both volume and open interest for derivative contracts related to the Trumps’ World Liberty Financial token.
$WLFI fell around 36% on Monday, from a peak of $0.331 to $0.210 before making a little comeback to trade at $0.229, showing a roughly 30% loss for the day. At press time, the token was trading at $0.2553.
According to CoinGecko, the partial unlock gave $WLFI a market capitalization of about $7 billion, or 31st among all cryptocurrencies.
In the realm of cryptocurrency, standings can significantly influence wealth. Platforms similar to coinmarketcap.com generally evaluate tokens by calculating their price in line with the circulating supply. Those lists, in turn, frequently influence the direction of capital allocation.
However, hardly any smaller-cap coins are as closely associated with the halls of power as $WLFI. These tokens are being offered by leading crypto exchanges globally.
The market debut was to be a significant test of the extent to which the Trump brand could influence the token's value. There was a focused interest in the trading price of the 100 billion tokens associated with a one-year-old project.
However, the tepid debut suggests a hangover of sorts for the massive new tokens in the world.
Weak Debut Leads to Token Burn
To enhance holder value and manage supply effectively, World Liberty Financial proposed utilizing all protocol fees for the repurchase and burning of $WLFI tokens.
With the use of fees generated by protocol-owned liquidity, World Liberty Financial has proposed new governance that WOULD create a program to repurchase and burn tokens.
The World Liberty Financial board of directors has proposed that the platform's liquidity positions on Ethereum, BNB Chain, and solana be used to buy back WLFI tokens from the market. After that, they will be burned to remove them from circulation forever.
The suggested method, which is still awaiting approval, attempts to lower the circulating quantity of the token.
There will be a clear LINK between platform participation and token scarcity, as mentioned, leading to an increase in the relative ownership proportion of loyal long-term holders.
This represents an initial MOVE towards a broader repurchase strategy that could potentially include supplementary protocol income sources in the future, contingent upon approval.
The majority of comments reflected a positive sentiment toward the idea.
Trump's Wealth Surge Under the Lens
The Trump family has dedicated the past year to launching a range of cryptocurrency products and initiatives, including a dollar-pegged stablecoin, Bitcoin mining operations, and digital asset funds.
The family brand has expanded into a new area of risky finance, leading to criticism regarding potential conflicts of interest.
The policies enacted during Trump's administration have established a delicate balance between his official government responsibilities and his personal business interests.
Nonetheless, Trump provided his endorsement and played a role in the launch of World Liberty Financial on social media prior to assuming office.
He and co-founder Steven Witkoff are now designated as "Emeritus" on the company’s website.
Since the launch of World Liberty last year, the Trump family has reportedly generated approximately $500 million from the initiative, as per calculations by Reuters, which take into account the company's terms and conditions, transactions monitored by cryptocurrency analysis firms, and publicly available agreements.
Democrats in Congress and government ethics experts have criticized Trump's crypto ventures, including World Liberty, claiming that there are serious conflicts of interest between the president's efforts to reform the regulatory framework governing digital currencies and his family's involvement in the cryptocurrency industry.
However, the WHITE House has defended the president and repeatedly said that there are no conflicts of interest because Trump's assets are maintained in a trust that is controlled by his children.
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