TLDR
- WLFI token jumps 3% in 24 hours, recovering from an all-time low of $0.1614.
- 99% of the WLFI community supports a buyback and burn plan to reduce token supply.
- WLFI’s initial burn removed 47 million tokens from circulation.
- The buyback strategy is expected to enhance token scarcity and value over time.
The Trump-backed WLFI token has shown signs of recovery after a challenging period. Following a significant price drop and market volatility, World Liberty Financial (WLFI) announced a buyback and burn initiative that has sparked a surge in community support. The project aims to revive the token’s market position, using its liquidity fees to decrease token supply, which could potentially boost the value over time.
WLFI Token’s Recent Decline and Recovery
After experiencing a sharp decline in value, WLFI token has begun to rebound, with its price rising by 3% in the past 24 hours. The token, which had reached an all-time low of $0.1614, is now trading near $0.20. Despite this recovery, it remains about 50% lower than its peak earlier this month, when it hit $0.46.
The drop in value can be linked to several factors, including issues with investors breaking the token’s no-sale policy. One of the most notable incidents involved the freezing of Justin Sun’s wallet after he reportedly sold $9 million worth of WLFI tokens.
Source: TradingView; WLFI Price Daily Chart
This action affected over $3 billion in unlocked and locked holdings, leading to selling pressure on the token. To address this, Sun committed to purchasing $20 million in WLFI tokens, which has sparked further speculation about his ongoing role in the project.
World Liberty Financial’s Buyback and Burn Proposal
In an effort to stabilize and potentially raise the token’s value, the World Liberty Financial team has proposed a buyback and burn strategy. This plan involves using liquidity fees generated from the project to repurchase WLFI tokens from the market. Once acquired, these tokens will be sent to a burn address, effectively removing them from circulation.
This initiative aims to reduce the total supply of WLFI tokens over time, creating scarcity which may increase the value of the remaining tokens. The buyback-and-burn plan has garnered overwhelming support from the WLFI community, with 99% of participants voting in favor of the proposal. The community believes that this strategy will lead to long-term growth and strengthen the token’s market position.
WLFI Token’s Market Performance and Future Outlook
WLFI’s initial market performance has been impacted by several factors, but the buyback and burn plan could provide a much-needed boost. Since its launch on September 1, WLFI gained attention due to its association with the Trump family, attracting substantial interest from investors, particularly in Asia and the Middle East. Within days of launch, WLFI’s daily trading volume exceeded $580 million, aided by listings on major exchanges like Binance, KuCoin, and Bitget.
Alongside the WLFI token, the World Liberty Financial project launched its stablecoin, USD1, on the Solana blockchain. This development further strengthens the project’s narrative and may provide additional support for the WLFI token in the future. However, while the buyback-and-burn plan has already received significant backing, the ultimate success of the strategy will depend on how effectively it can reduce supply and generate demand for the token in the coming months.
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