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WLFI’s Crash: Can Trump-Backed Crypto Rebound?

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WLFI's Crash: Can Trump-Backed Crypto Rebound?

WLFI’s 10% Drop and $82 Million Outflow: Can the Trump-Backed Token Recover to $0.193 or Sink Deeper?

John: Hey there, folks! I’m John, a veteran writer for Blockchain Bulletin, where I break down the wild world of crypto in simple terms for everyone from newbies to those who’ve been around the block. Today, we’re diving into the ups and downs of WLFI, the Trump-backed token from World Liberty Financial, including its recent 10% price drop and a whopping $82 million outflow in early October 2025. For readers who want a full step-by-step guide, you can also check this exchange guide.

Lila: Hi everyone, I’m Lila, John’s curious assistant always eager to learn more about crypto. John, what’s WLFI all about, and why is everyone talking about this big drop?

Basics of WLFI

John: Great question, Lila. WLFI is the governance token for World Liberty Financial, a decentralized finance (DeFi) project linked to the Trump family. It launched in September 2025 and aims to make crypto lending and borrowing more accessible, with features like token buybacks and burns to manage supply.

Lila: Governance token? That sounds fancy—what does it really mean for everyday users?

John: Think of it like a voting share in a community club. Holders can vote on project decisions, such as making tokens tradable, which happened on 2025-07-16 according to Reuters. It’s built on blockchain for transparency, but remember, it’s still volatile like most cryptos.

Background and Launch

John: In the past, WLFI started with hype as a Trump-backed venture. It debuted on 2025-09-01, but fell in value on its first trading day, as reported by Reuters. Despite that, it briefly hit high valuations, with a fully diluted value of $34 billion at one point, per posts on X.

Lila: Wow, that’s a rollercoaster from day one. How did it get tied to the Trump family?

John: The project is family-led, with Donald Trump promoting it as a way to “make America great again” through crypto. By 2025-09-02, Forbes noted it traded 5 to 15 times above early sale prices, even after an initial drop. (And hey, who knew politics and pixels could mix like this?)

Recent Price Drop and Outflow

John: As of now, in early October 2025, WLFI faced a 10% price drop in one day, leading to about $82 million in outflows, based on the original article from Blockchain Magazine. This came amid broader market pressures, with the token sliding to around $0.1759 as of 2025-10-09, down 10.36% in the last day according to recent X posts.

Lila: Outflows? Is that like money running away from the token?

John: Exactly—like investors pulling out their funds quickly. News from BitcoinEthereumNews on 2025-10-04 reported the price slipping 3% to $0.20 despite bullish sentiment, sparked by treasury sales to Trump-backed Hut 8 mining company.

Current Market Landscape

John: Looking at the present, WLFI has seen stabilization efforts. CoinTelegraph reported on 2025-09-26 that holders approved a buyback and burn program after a 41% price drop, reducing supply to support value. Recently, Yahoo Finance noted on 2025-09-25 that $1.43 million worth of tokens were burned from buybacks funded by DeFi fees.

Lila: Buyback and burn—sounds like a BBQ for tokens! But seriously, how does that help?

John: It’s like a company buying back its own stock to boost scarcity and price. As of 2025-10-07, BitcoinEthereumNews mentioned the price stabilizing at $0.18 with a bullish double-bottom pattern emerging, hinting at potential recovery.

Potential Recovery Factors

John: For recovery, factors include ongoing burns and partnerships. BeInCrypto reported on 2025-10-04 that World Liberty Financial sold 100 million WLFI tokens to Hut 8 for $25 million at a premium, which could inject confidence. Volume spiked 81% recently, per X posts from 2025-10-07.

Lila: So, what might push it back to $0.193 or higher?

John: Verified developments like the planned crypto debit card in Q4 2025 or Q1 2026, as mentioned in X updates from 2025-10-03, could help. Plus, governance votes have made tokens more liquid since July 2025.

Risks and Safeguards

John: Risks are real—volatility from insider sales and market manipulation claims surfaced in X posts around 2025-09-05. The token crashed 55% hours after debut, per Crypto.news on 2025-09-01. Always use trusted exchanges and diversify.

Lila: How can beginners stay safe?

John: Here’s a quick list of safeguards:

  • Research via official sources like CoinMarketCap for latest updates.
  • Use hardware wallets for storage to avoid hacks.
  • Monitor regulatory news, as WLFI isn’t transferable in some cases yet.
  • Avoid investing more than you can lose—crypto isn’t a sure bet.

Looking Ahead

John: Looking ahead, WLFI’s future depends on broader crypto trends and project milestones. Predictions from X posts suggest an average of $0.41 in a 2025 bull market, but that’s based on sentiment, not guarantees. Keep an eye on updates from reliable sites like CoinTelegraph.

Lila: Any final thoughts on if it could sink deeper?

John: If outflows continue without strong buy-ins, it might dip below $0.18, but burns and hype could turn it around. It’s all about watching the data.

John: Well, that wraps up our chat on WLFI’s bumpy ride—from launches to drops and possible comebacks. Crypto is full of surprises, but staying informed is key to navigating it wisely. And if you’d like even more exchange tips, have a look at this global guide.

Lila: Thanks, John—it’s exciting yet cautious stuff. Remember, folks, do your homework before jumping in!

This article was created using the original article below and verified real-time sources:

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