Key Notes
- World Liberty Financial has burned 47 million WLFI tokens.
- Burn represents 0.19% of circulating tokens, cutting supply to 99.95 billion.
- WLFI still slipped 9% despite the move.
The Trump family-backed World Liberty Financial has begun burning its native token WLFI to stabilize its price after a rocky launch. The platform burned 47 million WLFI tokens in the late hours of Tuesday, permanently removing them from circulation.
According to CoinMarketCap, around 24.66 billion WLFI, just over a quarter of its 100 billion total supply, has been unlocked. The recent burn accounts for 0.19% of the circulating supply, reducing the overall total to around 99.95 billion tokens.
Token burns are a common tactic in crypto markets designed to reduce supply and theoretically support token value. Despite this event, WLFI posted a 9% daily loss on Sept. 3.
At the time of writing, WLFI is trading just above $0.22 with a market cap of $5.58 billion, sitting at the 27th spot among the largest cryptocurrencies by market value.
Crypto expert Elja commented on X that it is “only a matter of time” before the new crypto secures a position within the top ten.
WLFI Buyback and Burn Proposal Gains Support
Notably, WLFI was launched for public trading on Sept. 1 after early investors were allowed to sell their holdings. WLFI briefly peaked at $$0.46 before retreating sharply. It has since fallen more than 50% from that level.
WLFI has also proposed to implement a token buyback and burn program, funded through protocol-owned liquidity fees. The team believes that it would benefit long-term holders by increasing their relative ownership share while removing tokens held by short-term participants.
Broader Concerns Over Speculative Hype
WLFI’s trading launch is most likely the Trump family’s most significant financial success since the president’s inauguration. The token has quickly become Trump’s most valuable asset, potentially surpassing the worth of their long-standing real estate portfolio.
According to the Wall Street Journal, the launch of the digital currency generated as much as $5 billion in paper wealth for the family on its first day of trading.
However, with the broader crypto market remaining volatile, the actual size of that fortune is still uncertain. The Trump-linked TRUMP meme coin, which was introduced in January, experienced a sharp rally before collapsing soon after.
Many crypto market participants speculated that WLFI could face the same future as the TRUMP meme coin.
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A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
Parth Dubey on LinkedIn
Source: https://www.coinspeaker.com/world-liberty-financial-burns-47m-wlfi-tokens-to-boost-price/
