Since the launch of WLFI yesterday, the results have been disappointing. Trump and Sun Ge (Justin Sun) are not a double-edged sword, but rather a double whammy.
The current WLFI price is 0.236, the circulating market value is 5.77 billion US dollars, and the total circulating market value is 23.41 billion US dollars.
With 25% of the current circulation volume, the market capitalization ranks 26th.
Peak at the start?
Judging from the performance and routine of TRUMP previously issued by the Trump family, the trend of WLFI can actually be basically predicted. The subsequent price will continue to fluctuate downward, becoming a new round of harvesting machine!
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Trump's past experience: Trump's tactics of rapid rise and fall
To understand WLFI, let's first review the rise and fall of Trump. At the beginning of last year, the Trump family launched Trump, a typical MEME coin, which was hyped entirely by Trump's personal influence. The highest price on Binance was 77.24, and the highest circulating market value was 12.119 billion US dollars. According to the current total circulating market value ranking, it can surpass SUI and reach 14th place.
Trump promoted it via Twitter, calling it a "symbol of support for the MAGA movement," and then a large number of people flocked in, pushing the price to its peak.
The good times didn’t last long. Now the price of TRUMP is 8.37. The price has dropped by nearly 90% from the highest point to the current price. That is to say, those who bought $100,000 at the high point now only have $11,000 left.
Why did Trump collapse so quickly?
From the perspective of the mechanism, the problems are very intuitive. First, 80% of the chips are in the hands of internal members, and the circulation is extremely low. Therefore, from the beginning of the issuance to the peak market value of 12.119 billion, this is all a false prosperity. Only early investors and project parties cashed out at high points and made a lot of money. The retail investors who entered the market on the subsequent first-line trading platforms became the ones who took over. Secondly, what is the role of TRUMP? It is meaningless. Everything revolves around three big words - Trump. Short-term consensus holders are all speculators and lack long-term value support. Secondly, it is highly tied to the 24-year election. When the craze recedes, the price will be unsustainable. Before the election (increase): The great crypto president. After the election (fall): Why didn't that shot kill him?
This is the current state of celebrity effect. If the wealth effect is strong, you are a legend. If the wealth effect is gone, everyone will condemn you.
Comparing WLFI with Trump's past
WLFI claims to be a decentralized finance platform, or DeFi, aiming to boost the crypto through its USD1 stablecoin and its WLFI governance token. Does it appear more upscale than Trump? It has a white paper, integrates lending and payment functionality, and boasts endorsements from the Trump family and Justin Sun The project raised $550 million through a public sale with KYC verification, and its initial publicity was also quite strong.
In fact, from Trump's perspective, it's nothing more than I cut you off a wave at the beginning, and finally you found that the following points may not be able to cut off, so I will change to a more exquisite packaging, but the core logic is still brand realization and fan harvesting
Token distribution and circulation traps:
The lessons learned from the Trump token show that token distribution is a key risk point. 80% of TRUMP tokens were held internally, leading to price manipulation and crashes. The situation with WLFI is even more serious. Of the total supply of 100 billion WLFI tokens, the Trump family, through DT Marks DEFI LLC, holds 2.25 billion, representing 83% of the initial circulating supply. Currently, only 25% (approximately 25 billion) are in circulation, creating a false sense of scarcity and driving the price to a high of $0.44. However, the remaining 75% of tokens will be gradually unlocked through future governance votes, suggesting significant selling pressure is imminent.
The collapse of the TRUMP token is precisely due to a similar mechanism where low circulation in the early stage pushed up the price, and then the unlocking led to dilution. The circulating market value of WLFI of 5.77 billion seems considerable, but the total circulating market value of 23.41 billion indicates that once unlocked, the price will be greatly pressured.
The high-stakes, speculative nature of the Trump brand:
The dramatic rise and fall of the TRUMP token demonstrates that while Trump's brand influence can boost short-term price action, it can't sustain long-term value. The same is true for WLFI. The Trump family, with roles like "Chief Crypto Advocate" (Donald Trump) and "Web3 Ambassador" (Eric Trump and Donald Trump Jr.), has launched a fierce marketing campaign. Earlier this year, WLFI capitalized on Trump's inauguration by announcing a $47 million purchase of ETH, wBTC, and other assets, generating market excitement.
But this is nothing more than a rehash of the TRUMP token's "Twitter post pump" tactic. Trump's fan economy is particularly effective on Twitter, with his hundreds of millions of followers providing a natural traffic pool for WLFI. However, the results of the TRUMP token confirm that fan enthusiasm cannot defy market forces. Once the popularity wanes, WLFI will repeat the same mistakes.
Justin Sun's joining the ranks of "professionals" in cutting leeks has helped:
While the Trump token lacks Justin Sun's involvement, WLFI has brought in Justin Sun, known as "Sun Ge." Sun is a prominent figure in the crypto, a frequent target of buzz. He has invested over $75 million in WLFI and serves as an advisor. The TRON blockchain has also integrated with WLFI's USD1 stablecoin. While celebrity endorsements (like Trump's) can drive up prices in the short term, Justin Sun's involvement makes WLFI more like a "professional harvester."
Tron's JUST DeFi project experienced rapid price increases and price drops, causing significant losses for retail investors. Justin Sun's projects often lead to short-term gains and long-term losses.
WLFI subsequent price prediction
The price trend of WLFI will follow the pattern of "small rise - big fall - small rise - big fall". At present, the price of 25% in circulation has dropped to 0.2, which is already showing signs of fatigue. In the short term, it may rise to 0.3-0.35 because the celebrities behind it continue to support it and shout out the good news (this is just a possibility, but I don’t recommend buying it. The uncertainty is too strong and there is no need to take risks). However, in the medium term (1-2 months), the price will fall below 0.1 due to the following reasons
1: Subsequent token unlocking, the market liquidity is less than the selling amount
2: Actual effect: The USD1 price of WLFI is very unstable now, and its governance function is currently non-existent. It is said to exist, but it is useless.
3: Capital has poured in and retreated to the background, while retail investors took over and shed tears in secret. Conclusion : From the perspective of TPUMP, WLFI is actually just a "brand monetization" experiment of the Trump family. The most advanced gameplay is that the initial participation is profitable. This trick will enable him to launch new projects again and there will be a large number of followers (the bottom chips, the price of the online contract market can basically double or triple, and the profit is locked by opening a short order. This trick is definitely taught by Brother Sun)
So don't blindly chase Trump's halo, in the end WLFI will only repeat Trump's mistakes in the future
See you at WLFI 0.1↓!!!
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