Simply put
- WLFI is expected to launch for trading on Monday.
- Analysts warn that WLFI tokens could negatively impact retail investors, according to Compass Point.
- A significant portion of WLFI tokens is allocated to insiders and early supporters.
Analysts from Compass Point see some potential concerns for investors in the global Liberty Financial Token as it prepares to enter the market soon.
WLFI will be ready for trading on Memorial Day, where Ethereum-based tokens have been poised to join various highly-rated exchanges. This follows a year since their non-transferable governance token was established, as noted by an analyst on Tuesday.
However, only a fraction of the total WLFI supply will actually be available for trading on the anniversary. The remainder remains locked. It’s indicated that on paper, the token’s value could seem quite inflated since more than 20% of the tokens are controlled by Donald Trump’s family. While these locked tokens won’t be traded, they still influence the assumed pricing for WLFI.
“If WLFI lists with inflated FDVs, much like Coinbase did, it could lead to significant losses for retail investors,” the analyst pointed out. Many retail investors who tried to capitalize on Trump’s previous meme coin saw substantial losses.
When Trump was first introduced in the crypto market, around 80% of the supply was held by insiders. At the time, Solana-based tokens reached an impressive $44 billion in FDV before being listed on exchanges like Coinbase. Trump’s FDV was pegged at $8.3 billion on Tuesday, but the tokens have already dropped 89% from their peak in January, drawing information from Crypto Data Provider Coingecko.
The landscape for meme coins has become fraught with challenges. Tokens listed on platforms like Robinhood only days after being released on Binance and Coinbase have attracted attention, and many viewers see it as an easy entry point into crypto for beginners.
Some more experienced traders are now speculating on WLFI’s price, with some discussions circulating around excesses from a recent exchange. This reflects a unique feature—similar to a perpetual futures contract—without a specific spot price requirement.
On Tuesday, WLFI was priced around $0.25 for high fat, while giving it an FDV of about $25 billion. That marks a significant decline from its initial price of $0.43 on Hyperliquid.
Though WLFI is ready to start trading, gaining access to tokens is proving more complex than for other presidential meme coins, and as the market adapts, the process for trading will inevitably evolve.
At this point, WLFI is only accessible to certified investors. To trade the token, current holders must complete a four-step verification process on the project’s website. It’s reported that about 34% of WLFI’s total supply, which is 100 billion tokens, was allocated for early sales.
There’s still some uncertainty regarding how many WLFI tokens will be available in the market when Memorial Day arrives. There are indications that some tokens sold to early supporters might be unlocked once trading begins. Further token unlocks may occur via future voting, suggesting different timelines for different holders.
The proposal emphasizes that tokens assigned to founders, team members, and advisors won’t be among the first to unlock, as they adhere to a longer schedule—aimed at demonstrating their commitment to the protocol’s success and sustainability.
