Recently, an eye-catching event occurred in the crypto assets market. The WLFI Token, associated with the Trump family, saw its price plummet by 24% within just 24 hours, leading to a market capitalization loss of hundreds of millions of dollars. This event not only shook the crypto world but also sparked heated discussions about the involvement of political figures in the digital asset space.

The WLFI Token was originally a decentralized finance project launched by the Trump family in 2024 and had garnered the favor of several well-known investors. However, with Trump's return to the political arena, the sensitivity of this project has increased sharply.

Regulators are primarily concerned with potential conflicts of interest. As a head of state, Trump's decisions may directly impact the direction of the crypto market, while he is also a stakeholder in the WLFI project. It is reported that the U.S. Securities and Exchange Commission (SEC) has begun a preliminary investigation into this matter.

There are three main reasons for the panic selling by investors: the sharp rise in regulatory risks, the increasing uncertainty in the political environment, and the market's doubts about the long-term development prospects of the projects.

From a technical perspective, the WLFI project itself has no obvious flaws, and its smart contracts have also been audited by professional institutions. However, the involvement of political factors has made the technical advantages relatively secondary.

This event has also attracted close attention from international regulatory agencies. The European Union has stated that it may adjust relevant regulatory policies based on this matter, and this global attention has further increased the pressure on the project.

This incident may drive the establishment of stricter rules to limit the participation of political figures in crypto projects. This has not only had a direct impact on the WLFI project but has also sounded the alarm for the entire crypto world, potentially triggering a new round of regulatory changes.