The World Liberty Financial project, associated with the Trump family, has begun burning its WLFI tokens in an effort to support their declining price since launch.
Token Burn Process
On Wednesday, 47 million WLFI tokens were burned, representing 0.19% of the circulating supply. The burning process permanently removes these tokens from circulation, and currently, about 24.66 billion tokens are in circulation, constituting over 25% of the original supply of 100 billion.
Market Reactions
The WLFI token began trading on secondary markets on Monday, with a peak price of $0.331, followed by a decline. The token has decreased by over 31% since its opening, raising concerns among investors.
Expert Opinions on Token Launch
Kevin Rusher, founder of RAAC, stated that the hype surrounding WLFI indicates that the crypto market has yet to mature. He stressed that true longevity in the ecosystem will depend on institutional adoption rather than celebrity tokens. Mangirdas Ptašinskas from Galxe also noted that the token launch led to skyrocketing Ethereum gas fees, indicating further work is required to prepare the ecosystem for mainstream adoption.
The WLFI token launch and subsequent burn demonstrate the project's effort to regulate supply and support its price despite current market fluctuations.
