Gate is about to launch WLFI spot trading. What is the future prospect of WLFI?

On September 1, 2025, at 21:00 ( UTC+8, Gate exchange will launch World Liberty Financial ) WLFI ( for Spot trading. This governance token drives a DeFi protocol dedicated to promoting the US dollar stablecoin and solidifying the US dollar's global dominance.

Currently, the pre-market price on major platforms has reached $0.319, which has yielded more than 20 times the return compared to the early investors' cost of $0.015. Behind the immense enthusiasm of the market, is WLFI yet another cryptocurrency myth, or is it the prototype of the next generation of financial infrastructure?

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The Core Value and Mechanism Design of WLFI

WLFI's core positioning is a hybrid of a stablecoin issuing institution and a Decentralized Finance (DeFi) service platform, aiming to provide payment, lending, and Token issuance services through its flagship products.

Its value proposition lies in combining regulated on-chain dollars with governance tokens, which can guide protocol revenue and influence treasury policy.

WLFI's flagship product is the USD1 stablecoin, a digital currency pegged to the US dollar, fully backed by short-term US Treasury bonds, cash, and dollar deposits, with the custodian being BitGo Trust.

As of June 30, 2025, a total of approximately $2.207 billion in reserve assets is composed of 100% high-credit real-world assets )RWA(, of which about 85% are government money market funds. This RWA-backed model, custodied by BitGo and audited by Crowe, provides a robust underlying structure for USD1.

Market Performance and the Feast of Early Investors

WLFI has completed one of the largest token presales to date, selling 25 billion tokens and raising $550 million, attracting over 85,000 participants.

The cost for early investors is approximately $0.015. Before the Token officially goes live for trading, its futures price has traded in the range of $0.20 - $0.34, with some platforms even showing IOU prices as high as $0.56 - $0.57.

If calculated at a pre-market price of 0.30 USD, the fully diluted valuation of WLFI )FDV( has exceeded 40 billion USD, approximately 280 billion RMB. This positions it to potentially rank among the top in the global cryptocurrency market capitalization upon listing.

Unique Token Economics and Strategic Layout

The token economic model of WLFI is one of its most striking features and is also the reason the market believes it has short-term surge potential:

• Extremely low initial circulation: When launched on September 1, only about 5% of the Token supply was in circulation. Low circulation means that even with low demand, it can drive significant price fluctuations.
• Strong strategic support: Nasdaq-listed company ALT5 Sigma announced it has raised $1.5 billion to purchase WLFI Tokens and plans to hold approximately 7.5% of the total token supply. More importantly, ALT5 has been approved for $750 million to purchase WLFI on the secondary market, which provides strong potential support for the token price.
• Reflexive Design: The interest earned from the USD1 reserves will be used through smart contracts to repurchase and destroy WLFI Tokens in the open market. This means that WLFI becomes a deflationary asset linked to real-world cash flow, with buying pressure directly coming from the ecosystem's earnings.

Potential Risks and Challenges

Despite the promising outlook, investors must also be fully aware of the risks and challenges faced by WLFI:

1. High valuation and unlocking pressure: Even with a FDV of 20 billion USD, its valuation is already not low. In the future, a large number of tokens belonging to the team, advisors, and early investors will gradually be unlocked, which may create selling pressure.
2. Political and regulatory risks: The deep connection of this project with the Trump family is a double-edged sword. While it brings attention and resources, it also makes it more susceptible to changes in the U.S. political landscape and scrutiny from regulatory agencies.
3. Market Competition: The stablecoin market has been dominated by giants like USDT and USDC, and USD1 as a newcomer needs to carve out a path. Although its model is innovative, whether it can quickly scale up adoption remains uncertain.
4. Initial Volatility: A very low initial circulation volume is like a double-edged sword, as it can easily drive up prices but also means that prices may experience extreme fluctuations due to large trades, requiring investors to be prepared for risk management.

Conclusion and Outlook

World Liberty Financial )WLFI( is undoubtedly a highly topical and complex project. It cleverly integrates political influence, the stability of traditional financial assets )RWA(, the innovative token economic model of DeFi protocols, and the multiple narratives of capital operations in publicly listed companies.

In the short term, its extremely low initial circulation, large strategic purchasing fund preparation, and strong market attention provide ample imagination space for its price performance. Some analysts predict that WLFI has the potential to hit 1 dollar, and there are even discussions about the possibility of 10 dollars.

In the long run, the value of WLFI will ultimately depend on its ecosystem, especially whether the adoption scale and application scenarios of the USD1 stablecoin can continue to expand, and whether the actual revenue generated can continuously support the value of WLFI's token.

For investors, WLFI presents unique risk-return characteristics. It is a highly volatile crypto asset, backed by a mechanism linked to traditional financial cash flows.