The Trump family's Crypto Assets encounter Waterloo: WLFI urgently destroys 10 million Tokens.

The cryptocurrency project World Freedom Finance (WLF), supported by the Donald Trump family, ran into trouble shortly after its listing and had to take emergency measures to destroy approximately 11.34 million dollars worth of 47 million WLFI tokens. This decision was made after the tokens faced a massive dumping, when early investors were allowed to sell a portion of their Holdings for the first time.

I witnessed WLFI's price quickly drop from a high of $0.33 to below $0.23, a plunge that left investors uneasy. Such performance is undoubtedly a blow to Trump's high-profile entry into the encryption field, even though the project has generated about $500 million in revenue for the Trump family.

At the time of the release, the average price of WLFI was only $0.226, and the 24-hour trading volume plummeted by 62% to $1.77 billion. Interestingly, despite such a severe decline, the token still squeezed into the top 30 of the cryptocurrency market capitalization rankings, with a market cap slightly below $6 billion. Several mainstream trading platforms have listed the token, enhancing its liquidity and visibility.

Other tokens related to Trump have also faced a bloodbath. The official Trump token has fallen by 22%, down nearly 89% from its historical peak, currently standing at only $8.37. The token of Melania Trump has seen an even greater decline of 42%.

WLF views the destruction of tokens as a key strategy for stabilizing prices. Data shows that approximately 24.66 billion WLFI have been unlocked, accounting for a quarter of the initial supply of 100 billion, while this destruction only accounts for 0.19% of the circulating supply. The project also proposed a broader stabilization plan on Tuesday, suggesting the use of the protocol's own liquidity fees to fund regular buybacks and destruction, with the aim of increasing the relative holdings of long-term holders.

The stablecoin World Liberty Financial USD (USD1) launched by this decentralized financial platform has currently squeezed into the top ten stablecoins, with a circulation of over 2.67 billion. However, based on the current market performance, the Trump family's bet on encryption seems to be facing severe tests, which is both a test of market psychology and a challenge to token economics.

Against the backdrop of the current overall volatility in the encryption market, this performance may not be surprising. After all, just yesterday Bitcoin also plummeted nearly 10% due to Trump's threat to impose tariffs on China, and market panic spread.